The Bolivian Government has announced that, by publishing Supreme Decree No. 5503 in the Official Gazette, it has regulated the conditions for applying the credit deferral regime established under Law No. 1670, with the aim of protecting borrowers, preventing over-indebtedness, and preserving the stability of the financial system.

The provisions set forth in Title V of the Decree apply to all financial institutions supervised by the Financial System Supervision Authority (ASFI) and to insurance companies regulated by the Pension and Insurance Supervision Authority (APS).

Under this regime, financial intermediation entities and financial leasing companies may, for a period of up to six (6) months, defer the payment of installments corresponding to social interest housing loans and productive sector loans granted to micro and small economic units, subject to the express request of the borrower. This benefit may be applied only once per borrower during the period established under Law No. 1670.

The deferral covers payments of principal, interest, insurance premiums, commissions, and other charges. During the deferral period, the deferred principal will continue to accrue ordinary interest, which—together with the remaining deferred amounts—will be prorated over the remaining term of the loan once the deferral period has concluded. Borrowers who do not expressly request this benefit will continue to comply with their regular payment obligations. Borrowers who are in arrears may also access the deferral, provided that no judicial enforcement actions have been initiated.

For the implementation of this regime, the Decree establishes a set of mandatory operational conditions for financial institutions, including:

  • the delivery of revised payment schedules to borrowers free of charge;
  • the maintenance of deferred loans will continue to be reported as performing;
  • the implementation of the deferral without the need to execute amendments; and
  • the possibility, at the borrower’s request and subject to the institution’s assessment, to extend the loan term in order to avoid increases in installment amounts that could affect the borrower’s payment capacity.

In addition, the Decree provides that mortgage life insurance policies and those covering credit guarantees shall remain fully in force throughout the deferral period, without requiring the payment of premiums, surcharges, or default interest, and without any modification to coverage or contractual conditions. During this period, the capitalization of overdue interest is expressly prohibited.

Likewise, insurance companies operating in Bolivia are required to automatically defer payment of premiums for mortgage life insurance and policies securing credit guarantees for a period of up to six (6) months, without such deferral resulting in the cancellation of coverage. In the event of an insured loss occurring during the deferral period, insurers must process the claim in accordance with the applicable insurance contract, deducting only the deferred premium outstanding, where applicable.

Finally, the Decree requires financial institutions and insurance companies to carry out the operational, technological, actuarial, and accounting adjustments necessary to implement the regime and to submit to ASFI, by 31 January 2026, a report detailing the number and amount of deferred loans. ASFI is required to issue the corresponding implementing regulations within ten (10) calendar days from the publication of the Decree.