The Superintendence of Finance of Colombia issued External Circular 07 of March 17, 2020, whereby it gave instructions to the entities under surveillance, in order to mitigate defects derived from the financial market situation and the health emergency situation. Within the measures implemented by the Superintendence of Finance of Colombia, it is the measure of grace periods for housing loans.
It is important to emphasize that the Ministry of Housing, City and Territory issued on March 29, 2020, Decree 493, whereby Decree 1068 of 2015, Sole Regulatory Decree of the Finance and Public Credit Sector, and Decree 1077 of 2015, Sole Regulatory Decree of the Housing, City and Territory Sector, are amended with respect to the adoption of transitory provisions on causes for early termination of interest rate coverage granted to housing credit debtors and tenants in housing leasing operations.
In the context of Decrees 1068 of 2015 and 1077 of 2015, the benefit of interest rate coverage for loans for the acquisition of housing and housing leasing operations is contemplated. Decree 493 of 2020, adds to the above mentioned Decrees, evidencing that the granting of grace periods in capital and in interest in loans for the acquisition of housing or housing leasing contracts that have such benefit of interest rate coverage, to be agreed between the beneficiaries and the respective entity within the framework of the instructions of the Superintendence under Circular Letter 007 of 2020, shall not be understood as a cause for early termination of the coverage. Also, entities that grant grace periods both in capital and interest to the beneficiaries who have the interest rate coverage are obliged to inform the Bank of the Republic, which is the administrator of the Reserve Fund for the Stabilization of the Mortgage Portfolio.