On Aug. 22, 2024, URY CB issued Communication 2024/179 to replace paragraph 2 of Communication 2023/178 re accounting standards for preparing financial statements.
Amendments in subparagraphs a. and b. of item 1. come into force from Jun. 1, 2025.
Institutions will apply cure period (Numeral 2.5 of Annex 1 - Credit Risk Classification) to already existing restructurings so loans would be accounted for as performing loans.
As of Jun. 1, 2025, the foregoing Communication 2022/232 will no longer be in effect.
On Dec. 8, URY CB updated standards, write-off, nonperforming loans.
URY CB issued Communication 2022/232 re accounting standards of the classification of credit risks, as applied for preparation of financial statements for various firms.
The Communication references standards in articles 507, 596, 597 and 629 of the federal Compendium of financial system regulation and control rules (RNRCSF).
In addition, Revoked URY CB Communication 2020/241 of Nov. 19, 2020, see #91329.
Debtor Accounting
Informs financial intermediaries and service providers, currency exchangers, and credit management companies with largest assets of RNRCSF Annex 1, Category 3 changes.
Annex 1, Classification of credit risks, Cat. 3, Debtors with committed credit capacity.
Advises debtors use Category 3 re nonperforming loans, loans written off for arrears.
Said loans must be an accumulated amount which exceed 5,000 indexed units (UI).
Effectiveness
The modifications to credit risk accounting standards come into force on Dec. 8, 2022.
On Dec. 23, 2022, URY CB issued Circular 2415 to amend Article 210 of Compendium of regulations and control of financial system for financial intermediation institutions.
Pertains to limits of credit with related parties to treat the sums of credit risk as single.
Applies as single risk when risk assumed for supervisory personnel referred to in Article 261 of the compendium of said regulations, only if not prohibited by Article 257.
Also when parent company and its dependencies or the shareholders whose individual participation exceeds 10% of the integrated capital of the financial intermediation firm.
Finally, when assumed for those linked to shareholders with over 10 percent.
The risk determined in accordance with the above provisions may be up to 20% of the essential net worth quantified in accordance with the established in Article 204.
When the risk is fully or partially backed by one or more of the guarantees set forth in Article 205, the ceiling will be up to 25% of the quantified essential net worth.
Taking into account part not covered not exceed 20% of the essential net worth.
The modifications provided above will take effect starting Jan. 1, 2023.
Updated credit risk classification for the preparation of financial statements.
Specifically, Arts. 507, 596, 597 and 629 of RNRCSF for financial intermediation firms. Also, forex firms, credit managers with large assets, and other financial services firms.
Modified Annex 1, Classification of credit risk; Annex 3, on real and other guarantees.
The modifications per Communication 178 will become effective as of Jan. 1, 2025.
Aug. 2024 URY CB Accounting Standards
On Aug. 22, 2024, URY CB issued Communication 2024/179 to replace paragraph 2 of Communication 2023/178 re accounting standards for preparing financial statements.
Amendments in subparagraphs a. and b. of item 1. come into force from Jun. 1, 2025.
Institutions will apply cure period (Numeral 2.5 of Annex 1 - Credit Risk Classification) to already existing restructurings so loans would be accounted for as performing loans.
As of Jun. 1, 2025, the foregoing Communication 2022/232 will no longer be in effect.
Regulators
URY CB
Entity Types
Auditor; B/D; Bank; MSB
Reference
Com 2024/179, 8/22/2024; Com 2023/178, 9/21/2023; Cir 2415, 12/23/2022; Com, 2022/232, 12/8/2022; RNRCSF
