ASFI and APS executives at a press conference.
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The Supervisory Authorities of the Financial System (ASFI) and the Inspection and Control of Pensions and Insurance (APS) confirmed that in financial institutions in the country the rate of mortgage relief insurance was increased, with the consequent adjustment in the monthly installment of payment of loans and announced actions to “avoid excesses or disproportionate effects on credit operations.”
The measure applied by financial institutions implies an increase in the monthly payment of borrowers who have a social housing or vehicle purchase loan.
María Cruz, executive director of the APS, said that this increase is not due to a tax issue, but to the high rates of “accidents” in the world as a result of the covid-19 pandemic.
“It is important for the Authority for the Supervision and Control of Pensions and Insurance to announce to the population that indeed as a result of the mortality that has existed throughout the world, from covid-19, insurance companies have been affected by repayment contracts. – I assure you that you have foreign companies; therefore, we are reviewing all the credit life insurance, ”he said.
Meanwhile, the general director of the ASFI, Reynaldo Yujra, reported that the credit relief contracts of financial institutions will be analyzed to “avoid excesses or disproportionate effects on credit operations.”
“We have had meetings with both institutions, banks and insurance companies to carry out precisely this supervision work and demonstrate that excesses or disproportionate effects are not committed on credit operations, there was good spirit on the part of both sectors, both banking and of the insurance companies to discuss and review all these technical aspects and demonstrate that financial consumers are not affected, “said Yujra.
He explained that the ASFI as a regulatory body has the function of protecting and ensuring the interests of the rights of financial consumers.
The Director of the APS announced a revision of the regulations and it will be considered, according to calculations, if modifications are allowed.
“We are going to review the regulations and we will be able to make the corresponding modifications to the extent of the calculations. Also, to distort that this premium has been affected as a result of a tax increase, and these insurances do not have a tax because they are insurance that covers people’s lives and they do not have a tax,” Cruz concluded.
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