Honduras' National Banking and Insurance Commission (CNBS) has revised and reissued its temporary relief mechanisms for borrowers directly or indirectly affected by Tropical Storm Sara and related flooding and landslides, replacing the framework approved in November 2024. The changes extend the time allowed for borrowers to request loan restructuring or refinancing and update prudential and accounting conditions for CNBS-supervised institutions that grant credit. The revised mechanisms allow supervised institutions, after identifying and assessing affected borrowers, to restructure or refinance loans on terms aligned with the borrower’s capacity to pay, including eligible consumer and housing loans where income disruption is justified. Relief restructurings retain the loan’s risk category as at 31 October 2024, with subsequent classification based on payment performance under CNBS credit classification rules, and institutions must keep the pre-existing interest rate for at least the first six instalments. The rules prohibit commissions, default interest, administrative charges and other fees linked to the relief operation, and prohibit capitalising unpaid accrued interest and other overdue charges into the new loan. Accrued unpaid interest (current and default) must be recognised as income only as it is collected. Relief may be granted once per borrower per institution, does not permit releasing impairment provisions already constituted, and requires beneficiaries to be flagged in the Central Credit Information system and in reporting to private credit bureaus. CNBS also requires an intensified communication strategy to provide clear, timely information on the advantages, disadvantages and financial costs of using the mechanisms, following CNBS noting that, as at 31 December 2024, only one finance company had granted two relief operations totalling HNL 1,030,000. Borrowers have until 31 July 2025 to submit restructuring or refinancing requests, and institutions must decide on them by 30 September 2025. The resolution is immediately enforceable, will be published in the Official Gazette, and renders the prior November 2024 resolution null and void.
Comisión Nacional de Bancos y Seguros de Honduras 2025-01-24
Honduras' National Banking and Insurance Commission reforms Tropical Storm Sara temporary credit relief and extends debtor application deadline to 31 July 2025
Honduras' National Banking and Insurance Commission (CNBS) has revised its relief mechanisms for borrowers affected by Tropical Storm Sara, extending loan restructuring requests and updating conditions for CNBS-supervised institutions. The framework allows restructuring without altering the risk category as of 31 October 2024, prohibits additional fees, and mandates clear communication of terms. The resolution is effective immediately, nullifying the previous November 2024 framework.