The Government rectifies the regulations that will regulate the activity of the so-called servicers, which are the platforms that manage the recovery of delinquent debt evicted by banks. In its original version, the Draft Law obliged banks to offer haircuts and even carry out partial debt forgiveness to vulnerable clients if they decided to package their credit and transfer it to a third party. According to the text, the amount forgiven by the bank should be aligned with the estimated sale amount. Therefore, the regulations promoted by the Executive forced entities to cancel the total debt owed to delinquent clients after delivering the amount for which they planned to sell the asset. With this, the Government sought to favor vulnerable households. The banks welcomed the objective, but feared that the measure as drafted would hinder portfolio sales, in addition to encouraging non-payment. The big problem is that the text required a solution to be provided to vulnerable clients before packaging the debt and putting it on the market despite the fact that the bank does not have sufficient and reliable information to identify this type of client. Fortunately, the Government has listened to the sector and has rectified the regulations, limiting the requirements to tailored payment plans and with haircuts, conditional on the repayment of the credit. Furthermore, now it will be the vulnerable clients themselves who will have to prove their condition. An adequate rectification, which avoids torpedoing the necessary removal of toxic assets from entities and which will help them improve their profitability and maintain their solidity in the event that turbulent times return, as occurred during the great debt crisis.
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