Bolivia's Ministry of Economy and Public Finance reports lower house approval of six-month halt to enforcement actions and mandatory deferrals for social housing and micro and small borrower loans

Bolivia's Ministry of Economy and Public Finance reported that the Chamber of Deputies approved Draft Law No. 547/2024-2025 to exceptionally suspend judicial seizures and enforcement actions linked to social-interest housing loans and to defer instalments on those loans and on credit granted to micro and small borrowers. The measure is presented as temporary relief to support the progressive recovery of economic activity and is expected to benefit more than 1.4 million borrowers. For six months from publication, the bill would suspend embargoes, auctions, dispossessions, enforcement of judgments and other judicial measures related to the covered credits, and provides that any contrary action is null and void. Financial institutions would be required to automatically defer payments of principal, interest, insurance, commissions and other charges, while being prohibited from increasing interest rates, applying sanctions or late-payment penalties, charging compound interest, imposing additional administrative costs, or changing the terms, conditions or coverage of mortgage life insurance and other credit-related insurance during the law’s validity. Borrowers would also be able to opt to continue making payments voluntarily through mechanisms offered by financial institutions. The ministry noted the bill is expected to be transmitted to the Senate for consideration, and the final provision instructs the Executive Branch to regulate implementation through a supreme decree within a maximum of 10 calendar days.