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Through Resolution SS. SG. No. 247 dated December 28, 2023 (the “Resolution”), the Superintendency of Insurance (“SIS”) decided to suspend the validity of one of the incompatibilities to be a shareholder or director of supervised entities and to hold positions in another supervised entity, as mentioned in Resolution SS. SG. 244 dated October 5, 2020.

Formerly, individuals or legal entities holding or having share ownership, either directly or indirectly, in other entities subject to SIS supervision and regulation to an extent that allows them to exert influence or control over one of them, were incompatible to perform the role of shareholder, director of supervised entities, or any other position in another supervised entity.

According to the recent Resolution, this incompatibility has been suspended until December 31, 2024, due to the need to conduct an impact and scope assessment of the regulations affecting the regulated market.  

Through Circular SB. SG. No. 01 dated January 2, 2024, the Superintendency of Banks communicates that the legally required minimum integrated capital for various entities is structured as follows:

Institution	Minimum Capital Excercise 2023	Adjustment for Consumer Price Index (IPC)	Minimum Capital Excercise 2024
Banks	65.426	2.404	67.830
Financial Institutions	37.713	1.202	33.915
General Deposit Wharehouses	27.196	999	28.195
Currency Exchange Offices	5.093	187	5.280
Fiduciary Companies	31.713	1.202	33.915
Leasing Companies	3.497	128	3.265

Through Resolution No. 268 dated December 14, 2023, the Secretariat for the Prevention of Money Laundering or Assets ("SEPRELAD") authorized the implementation of SIRO to carry out communications regarding Compliance Officers and/or Compliance Managers by Obligated Subjects.

Through Resolution No. 08, Minute No. 73, dated December 26, 2023, the Board of the Central Bank of Paraguay (“BCP”) modified the deadline from which the entities authorized to operate as Credit Information Bureaus (“BIC”) can provide credit reference services.

In this regard, an extension is established until May 1, 2024, allowing the authorized entities to initiate their credit information service activities.

This circumstance is ascribed to the ongoing review of all the required documentation for the entities, as mandated by Resolution No. 03, Minute No. 08, dated February 21, 2023, which has not yet concluded.

Through Resolution No. 4 dated December 6, 2023, the Central Bank of Paraguay ("BCP") established the extension of temporary measures to support the productive sector until March 31, 2024.

These measures aim to mitigate the adverse effects of climate change, particularly for agricultural producers who suffered losses due to the reduction in the prices of their products in previous periods.

In this regard, the BCP has directed that, in the case of loans granted to sectors related to agricultural and livestock activities that were affected by the reasons determined in the previous paragraph, the counting of the overdue period in the formalization of renewals, refinancings, or capital restructurings, including accrued interest and other charges, will be allowed to be interrupted until the date of the new agreement or contract. For higher risks, it will be essential to conduct a prior analysis individually or by economic sectors or similar activities, or by a group of clients with a similar risk profile.

Through Resolution No. 01, Minutes No. 01 dated January 3, 2024, the Central Bank of Paraguay ("BCP") ordered the intervention by the Superintendency of Banks ("SIB") of the Retirement and Pension Fund for Employees of Banks and Related Institutions ("CJPEBA"), due to the disintegration of the Board of Directors. The SIB will intervene until the new authorities of the Board assume their roles, a period that cannot be extended for more than 90 days.

The administration of CJPEBA will be assumed by the interveners designated by SIS before CJPEBA, with the authority to carry out the following acts of administration and conservation: (i) Collect mandatory contributions and dues; (ii) Pay retirements, pensions and other retirement benefits; (iii) Collect principal and interest installment payments, fees, and others, from loans granted by CJPEBA; (iv) Grant pensions, retirements, and other retirement benefits; (v) Physically preserve the assets and documents of the entity, taking appropriate security and conservation measures; (vi) Provide information to SIS and the Board of the BCP, upon their request or on its own initiative, to alert authorities about situations that require immediate action; and (vii) Perform other acts that may be necessary to enable the functioning and continuity of the administration and conservation of the intervened entity, which may be authorized by SIS.

Through Resolution SV. SG. No. 030 dated December 26, 2023, the Superintendency of Securities ("SIV") approved the Unique Chart of Accounts ("PUC") and the Manual of Accounting Records for mandatory use by brokerage firms and investment fund management companies. These are detailed in Annexes I and II, respectively.

The PUC will become effective on January 1, 2024. Consequently, the financial statements for the first quarter of the year 2024 are required to incorporate the detailed records of operations in accordance with the PUC.

Additionally, it is clarified that the mere listing of operations in the PUC does not authorize its validity. Therefore, in case of new transactions, brokerage firms and investment fund management companies must obtain prior approval from the SIV.

The Sectors specified in the PUC are: (i) Assets; (ii) Liabilities; (iii) Net Equity; (iv) Contingency; (v) Off-Balance Sheet Accounts; (vi) Income; and (vii) Expenses.

In Annex II of the Resolution, the Manual of Accounting Records defines each Sector and Chapter that constitutes the PUC.

In accordance with Resolution No. 202 dated November 21, 2023, the Secretariat for the Prevention of Money Laundering or Assets ("SEPRELAD") authorized the implementation of the Integrated Operations Reporting System ("SIRO") for the submission of compliance reports by the Obligated Subjects. The resolution will come into effect on January 1, 2024.

The annual reports on the evaluation of Internal Control procedures will be submitted through SIRO according to the following timetable:

Obligated Subject	Applicable regulations	Date	Entity
Real Estate	Art. 13 – Res. 201/20	Within 90 days following the close of the fiscal year	SEPRELAD
Automobiles	Art. 13 – Res. 196/20	Within 90 days following the close of the fiscal year	SEPRELAD
Jewelry	Art. 13 – Res. 222/20	Within 90 days following the close of the fiscal year	SEPRELAD
Gambling	Art. 13 – Res. 258/20	Within 90 days following the close of the fiscal year	SEPRELAD/CONAIZAR
Remittance Agency	Art. 13 – Res. 176/20	Within 90 days following the close of the fiscal year	SEPRELAD
Cooperatives	Art. 13 – Res. 156/20	Within 90 days following the close of the fiscal year	SEPRELAD/INCOOP
E-wallet	Art. 13 – Res. 77/20	Within 90 days following the close of the fiscal year	SEPRELAD/SIB
Insurance	Art. 13 – Res. 71/20	Within 90 days following the close of the fiscal year	SIS
Currency Exchange	Art. 13 – Res. 248/20	Within 90 days following the close of the fiscal year	SEPRELAD/SIB
Securities	Art. 13 – Res. 172/20	Within 90 days following the close of the fiscal year	SEPRELAD/SIV
Virtual Assets	Art. 13 – Res. 314/20	Within 90 days following the close of the fiscal year	SEPRELAD

The annual external audit reports will be submitted through SIRO according to the following timetable:

Obligated Subject	Applicable regulations	Date	Entity
Real Estate	Art. 14 – Res. 201/20	Within 180 days following the close of theaudited fiscal year	SEPRELAD
Automobiles	Art. 14 – Res. 196/20	Within 180 days following the close of theaudited fiscal year	SEPRELAD
Jewelry	Art. 14 – Res. 222/20	Within 180 days following the close of theaudited fiscal year	SEPRELAD
Gambling	Art. 20 – Res. 258/20	Within 180 days following the close of theaudited fiscal year	SEPRELAD/CONAIZAR
Remittance Agency	Art. 23 – Res. 176/20	Within 180 days following the close of theaudited fiscal year	SEPRELAD
Securities	Art. 23 – Res. 172/20	Within 180 days following the close of theaudited fiscal year	SEPRELAD/INCOOP
Cooperatives	Art. 22 – Res. 156/20	Within 180 days following the close of theaudited fiscal year	SEPRELAD/SIB
E-wallet	Art. 20 – Res. 77/20	Within 180 days following the close of theaudited fiscal year	SIS
Currency Exchange	Art. 23 – Res. 248/20	Within 180 days following the close of theaudited fiscal year	SEPRELAD/SIB
Virtual Assets	Art. 15 – Res. 314/21	Within 180 days following the close of theaudited fiscal year	SEPRELAD/SIV
Non-profit Organization (Level 3)	Art. 34 – Res. 490/22	Until June 30 of the following year for each audited fiscal year	SEPRELAD

Finally, the compliance officer's reports will be presented through SIRO according to the following timetable:

Obligated Subject	Applicable regulations	Date	Entity
Gambling	Art. 16 – Res. 258/20	Within 60 days following the close of the fiscal year	SEPRELAD/CONAIZAR
Remittance Agency	Art. 18 – Res. 176/20	Within 60 days following the close of the fiscal year	SEPRELAD
Securities	Art. 18 – Res. 172/20	Within 60 days following the close of the fiscal year	SEPRELAD/SIV
Cooperatives	Art. 17 – Res. 156/20	Within 60 days following the close of the fiscal year	SEPRELAD/INCOOP
E-wallet	Art. 15 – Res. 77/20	Within 60 days following the close of the fiscal year	SEPRELAD/SIB
Insurance	Art. 56 – Res. 71/19	Within 60 days following the close of the fiscal year	SEPRELAD/SIS

The Superintendency of Banks through Resolution No. 19/23 dated November 8, 2023 (the "Resolution") modified the categories of applicants for credits destined to housing loans provided in Resolution No. 12 dated October 29, 2020, which was rendered ineffective by the latest Resolution.

Identification of loans granted by financial institutions

The Resolution provides that loans disbursed by financial institutions for housing financing, regardless of their amount, shall be identified as "PERSONAL DEBTORS - HOUSING". However, the Resolution provides that loans for commercial purposes will not be included in this classification.

In addition, the Resolution provides that, the loan balances destined to housing financing will be classified as "Category II Assets with 0.10 rating". This is to determine solvency indicators.  

Categorization of debtors

Debtors will be categorized according to their payment behavior, based on the default observed depending on the number of days of delay. In this regard, the Resolution provides for categories that are divided on a scale from 1 to 6, with the higher scale corresponding to a longer duration of the debtor’s defaults. For example, loan balances up to 60 days past due will be part of category 1, and loan balances more than 330 days past due will be part of category 6. The Resolution also provides that the projections will be applied from risk category 2 onwards.

Minimum information requirements

Financial institutions must comply with certain minimum information requirements for debtors, for example, identification of the debtor (identity card or equivalent), information on the application, purpose and conditions of the loan, among others. If a co-debtor is involved, the minimum information requirements will also apply to the latter.

Interruption of the computation of days in default

The resolution stipulates that in cases of renegotiations, whether it be renewal, refinancing and/or restructuring of housing operations, the payment by the client with their own resources of 10% of the overdue debt (capital plus interests) and other due charges will interrupt the computation of the days in default. This will allow the upgrading of the category to the next lower risk category.  

Appraisal of the property and minimum projections

The Resolution also provides that 100% of the quick sale value of the appraised value of the real estate received as collateral for housing loans will be established as the computable value for the determination of the minimum projections.

The appraised value of the collateral must be updated within a period of no more than 5 years. However, when the debtor is more than 90 days in default, or any other indicator of deterioration, a new appraisal must be made, provided that the last appraisal is not less than 3 years old.  

El Poder Ejecutivo emitió el Decreto 933 de fecha 27 de diciembre de 2023 (el “Decreto”) por el cual reglamenta la Ley 5741/2016, encargada de regular la incorporación de propietarios y/o responsables de microempresas al seguro social del Instituto de Previsión Social (“IPS”) y establece un sistema especial de beneficios del sistema de seguridad social para estos.

En líneas generales, el Decreto establece:

1. Aplica a propietarios y/o responsables de las Microempresas clasificadas conforme a la Ley 4457/2012 en: dueño, titular o propietario de Microempresa; socio de una Microempresa, y; responsable de Microempresa. Estos sujetos podrán registrarse como asegurados titulares ante el IPS, y podrán registrar a sus familiares como beneficiarios del seguro social de acuerdo con la ley aplicable.
2. Las Microempresas están obligadas a inscribirse ante el IPS y registrar a los sujetos señalados en el punto anterior, conforme a las normativas aplicables.
3. Para la inscripción, que será gradual, el Decreto prevé un Programa de formalización y regularización. Para acreditar la calidad de Microempresa, se tomará la categorización de microempresa. La inscripción será conforme al siguiente cuadro, sin perjuicio de que los sujetos obligados se inscriban antes:

Años	Criterios para incorporación gradual
2023 2028	Los propietarios y/o responsables de las microempresas con cédula MIPYMES vigente que soliciten su inscripción.
2028	A partir de 1 de julio del año 2028, todos los sujetos obligados por ley deberán estar inscriptos ante el IPS, según la categorización del Ministerio de Industria y Comercio MIC.

4. La base imponible del aporte que deben hacer los propietarios y responsables de Microempresas es el mayor salario mensual declarado y abonado a sus trabajadores, que en ningún caso podrá ser menor al salario mínimo legal vigente para actividades diversas no especificadas, y la tasa de aporte es del 23% (veintitrés por ciento) sobre dicha base imponible. Sin embargo, en su calidad de empleadores, los propietarios y/o responsables de Microempresas, están obligados a cotizar de conformidad a las normativas generales del IPS (16,5% empleador – 9% trabajador).
5. Las prestaciones que otorga el IPS son por riesgos de accidente y enfermedad común; accidente y enfermedad profesional; maternidad; invalidez; vejez, y; muerte, conforme a las disposiciones legales del IPS.
6. Las prestaciones económicas de largo plazo se calcularán tomando como periodo de referencia el promedio de los últimos 120 (ciento veinte) salarios mensuales sobre los cuales se cotizó al IPS.
7. El MIC se encargará de proveer información actualizada sobre las microempresas.
8. La base imponible se deberá declarar mensualmente de manera a realizar la liquidación respectiva.
9. La mora de aportes por un periodo de sesenta (60) días en adelante imposibilitará al titular y grupo familiar el acceso a prestaciones otorgadas por el IPS. El IPS establecerá el plazo para el pago de los aportes mensuales.
10. Los aportes se distribuirán para el fondo de jubilaciones y pensiones, de enfermedad y maternidad, y administración general en el porcentaje fijado por ley.
11. Se pierde la calidad de sujeto obligado cuando: no se acredite la calidad de propietario y/o responsable o no sea categorizado como MIPYMES conforme a las leyes aplicables; ante la suspensión temporal, cierre, clausura o cancelación definitiva del RUC de la empresa (debe comunicarse la inactividad ante el IPS, y; ante la muerte del titular.
12. El propietario y/o responsable de una Microempresa que sea categorizada por el MIC, en el nivel superior de pequeña o mediana empresa, podrá: continuar aportando el 23% para acceder a las prestaciones aplicables a microempresas, o; podrá acogerse al régimen de continuidad en el beneficio o de trabajador independiente para continuar cotizando solamente para la jubilación, de acuerdo con las leyes aplicables. El cambio de categoría no implica pérdida de aportes que se acumularán para efectos jubilatorios.
13. La implementación de las disposiciones del Decreto será regulada por el MIC y el Ministerio de Trabajo, Empleo y Seguridad Social, y, el IPS.