The Central Bank of Ecuador has outlined a temporary, voluntary framework allowing individuals and businesses whose economic activity, income or repayment capacity has been affected by El Niño to defer upcoming loan installments for up to 90 days. The Financial and Monetary Policy and Regulation Board (JPRFM) established the framework on Nov. 8, 2026. It covers loans from public and private banks, cooperatives and mutual institutions, with deferrals requiring agreement between borrowers and lenders.
Each borrower may use the mechanism once at each institution, covering one or more loans. Deferred installments will move to the end of the repayment schedule, with no ordinary interest charged on those installments during the deferral period. The arrangement will not generate late payment interest, fees, penalties, legal costs or other charges. Borrowers may request a deferral subject to lender approval. Lenders may also offer it, but must obtain the borrower’s express written acceptance, including electronically. Before accepting, borrowers must receive clear information about their revised payments and amortization schedule. The mechanism does not cancel the debt.
Loans will retain their credit classification, and deferred installments will not be treated as overdue. Financial institutions may not reduce provisions on these loans as a consequence of the deferral. Supervisory bodies will monitor participating loans and report monthly to the JPRFM, which will assess whether to continue the measure during the first quarter of 2027, based on developments in the conditions that prompted it and information from the competent authorities.