Legal Summary 05/2020
Legal Summary 05/2020
Decree N° 2 whereby protective economic measures are issued.
Decree number 2, issued within the frame of the overall alarm status declared for the purposes of attending the coronavirus (COVID-19) health emergency, whereby protective economic measures are issued
March 25, 2020
Decree number 2 was published on March 23 of 2020 in Official Gazette of the Bolivarian Republic of Venezuela N° 6.521 Extraordinary, within the frame of the overall alarm status declared for the purposes of attending the coronavirus (COVID-19) health emergency, whereby protective economic measures are issued.
Within the measures contained herein there is an express order instructed to the Ministry of the People’s Power for Economy and Finance, through the Superintendency of the Banking Sector Institutions (SUDEBAN, for its Spanish acronym), to implement a special payment regime for credits in force and effect in the domestic banking sector, both public and private, under the following guidelines:
- The special regime shall be applicable to any type of credit granted by banking institutions, in force and effect and paid up whether in full or partially by March 13, 2020.
- The payment of both principal and interest will be extended, as well as any restructuring terms and any other clause contained in the respective credit agreements.
- The suspension of payments may be established, entailing payment enforcement and compliance of any other condition relating to the suspended payment, for a term of up to one hundred and eighty (180) days.
- Special conditions of a general nature may be established for certain credit categories.
- Neither delay interest nor the immediate payment enforceability upon any credit may be established at the end of the suspension period.
- Credits agreed upon on the basis of Commercial Credit Value Units (UVCC, for its Spanish acronym) or Productive Credit Value Units (UCVP, for its Spanish acronym), shall maintain their respective calculation methods during the entire suspension period and shall be paid up in accordance with the new conditions agreed upon.
In addition, credit assignment by banking institutions is instructed under priority terms to the strategic sectors which activities are essential for the purposes of attending the preventive and mitigating measures concerning the overall alarm status decreed by the Executive.
Consequently, the decree states that both public and private banking institutions, in accordance with the guidelines issued by the Superintendency of the banking sector institutions and the Governing Committee for the National Productive Sole Portfolio, shall prioritize credit assignment for the agricultural and food sectors, including the agricultural industry and food production and distribution chains, the pharmaceutical sector and hygiene products industry.
On the other hand, the Governing Committee for the National Productive Sole Portfolio is empowered to issue the applicable guidelines for access to credit of the aforementioned portfolio, prioritizing the abovementioned sectors as well as small and medium-size industry.
Finally, the Sectorial Vice-president for Economy is hereby entrusted with the execution and coordination efforts for the purposes of implementing the provisions contained in this decree and to develop any necessary aspects thereof for effective implementation.
This decree came in full force and effect as of the date of publication in the Official Gazette of the Bolivarian Republic of Venezuela
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