Compartimos la grabación del conversatorio sobre el Convenio para evitar la doble imposición firmado entre Paraguay y España. Evento organizado por el Capítulo de Paraguay de la International Fiscal Association, en el que participó como speaker nuestro asociado senior Horacio Sánchez Pangrazio, y contó con la participación de Oscar A. Orué, Director Nacional de la Dirección Nacional de Ingresos Tributarios, además de destacados profesionales nacionales e internacionales.
Through Resolution No. 20 Minute No. 19 dated May 9, 2024, the Central Bank of Paraguay established transitory measures to support the productive sector affected by adverse impacts of nature. This measure will be in effect until September 30, 2024.
Those loans granted to the sectors affected by the reasons set forth in the preceding paragraph and related to agricultural and livestock activities will not incur in arrears because the calculation of the term will be interrupted. The computation of the term will be interrupted in the formalization of renewals, refinancing or restructuring of the principal, including accrued interest and other charges. In the case of major risks, a prior analysis will be required to ensure its financial viability.
In the case of operations with terms of more than 2 years that require partial renegotiations, it will not be necessary to cancel the entire operation, and the debt may be renewed, refinanced or restructured by applying the originally constituted guarantees to the new agreement.
For this purpose, the financial entities must constitute provisions on the balance of the portfolio benefited by the transitory measure, in the same currency of the operation and for a percentage equivalent to the established provisioning regime. The provisions must be released gradually and in accordance with those of the immediately lower category, for each 20% of capital amortization of the portfolio benefited by this measure.
The provisions must be constituted on the value of the total debt according to the following classification:
| Category | Percentage of provisions |
| 1a | 0,5% |
| 1b | 1,5% |
| 2 | 5% |
| 3 | 25% |
| 4 | 50% |
| 5 | 75% |
| 6 | 100% |
The deferral of the charges generated by the forecasts will be gradually recognized over a period of no more than 24 months.
Financial institutions may no longer consider verifiable losses arising from adverse weather effects as "transitory financial weaknesses" or "reasonable doubts about the repayment of the credit" for the purposes of the risk classification. This exception does not apply in cases where the default justifies a more rigorous classification of the debtor.
For the purposes of debtor classification, loans benefiting from these special measures will be treated separately when assessing customer risk.
Financial institutions must submit monthly to the Superintendency of Banks the list of customers benefiting from these measures.
Through Resolution No. 5 Act No. 13 dated April 4, 2024, the Superintendency of Banks updated the Basic Savings Account Regulation (the "Regulation"), replacing the previous regulation approved by Resolution No. 25 Act No. 51 dated July 18, 2013.
The basic savings account is a product that offers the possibility of accessing financial services in an affordable manner and adjusted to the needs of a greater number of people. This product does not require a minimum opening amount or minimum average maintenance balance, the opening process is simple and can be done in person or remotely. In addition, it is exclusively for use in local currency, although it allows receiving remittances from abroad, which are credited in local currency at the exchange rate of the transaction date.
It is important to point out that the maximum amount of monthly accreditations may not exceed the equivalent to the limit applicable to the Simplified Regime of Due Diligence in the knowledge of clients, established by the Secretariat for the Prevention of Money or Asset Laundering. The monthly limit is set at three legal minimum wages (currently, the sum amounts to Gs. 8,041,119, approximately USD 1,097). In some cases, the financial institution may choose to establish a monthly limit of six minimum wages (currently, the sum amounts to Gs. 16,082,238, approximately USD 2,194), provided that the client completes the Identification Form and submits proof of income. In addition, only one basic savings account per person will be allowed in each supervised institution.
The Regulation establishes that users of a basic savings account may make: (i) deposits and/or accreditations at no cost at ATMs and Non-Bank Correspondents ("NBC"); (ii) at least, up to four monthly withdrawals at no cost at ATMs and NBC; (iii) unlimited transactions through the Paraguay Payments System; (iv) at least, up to two monthly balance inquiries at no cost at ATMs and NBC; and, (v) access the account statement for the last six months, at least, in an unlimited manner and at no cost.
Through Circular No. 02 dated May 10, 2024, the Secretariat for the Prevention of Money or Asset Laundering ("SEPRELAD") addressed the Obliged Subjects ("SO") under the natural supervision of the Superintendence of Insurance to communicate that the Integrated Operations Reporting System ("SIRO") does not yet have an objective reporting module for the insurance sector. However, SEPRELAD mentioned that its development is in the process of study and analysis.
SEPRELAD recommended the affected SOs are encouraged to continue submitting their monthly logs via email. SEPRELAD will report any progress in due course.
Through Resolution No. 16 Act No. 18 dated May 2, 2024, the Board of Directors of the Central Bank of Paraguay (“BCP”) amended articles 6 and 15 of the Regulations for the Issuance, Operation and Administration of Credit and Debit Cards (the “Regulations”).
Regardless of whether they have commercial agreements with card issuing participants, the Payment Service Provider (“PSP”) must follow the indications set forth in the Regulations when settling card transactions.
In cases where there is a commercial agreement between the PSP and the issuing participants, it is the responsibility of the PSP to take the necessary administrative measures to guarantee the settlement of the obligations arising from the use of the cards and to calculate the net positions resulting from the transactions carried out at the affiliated merchants. Settlement will be remitted through the Real-Time Gross Settlement feature (“RTGS”).
In the cases where there is no commercial agreement, the issuing participants must make the necessary arrangements so that the funds related to the card transactions are available to the PSP within a maximum of 2 business days after the sale transaction has been carried out. In turn, the PSP must transfer the funds to the beneficiary merchants within a maximum period of 2 business days. These transfers must be made through the Automated Clearing House feature (“ACH”).
Through Resolution No. 15 Minute No. 24 dated May 30, 2024, the Board of Directors of the Central Bank of Paraguay ("BCP") issued the Regulation of Loan Portfolio Sale Operations of Supervised Entities (the "Regulation"). This Regulation is applicable to financial institutions supervised by the BCP, subject to Law No. 861/96 "General Law on Banks, Financial and Other Credit Institutions" and its amendments, as well as to other entities that are supervised by the BCP in accordance with special laws.
The loan portfolio is the set of loans, of any nature, current and/or mature. The loan portfolio sale includes the transfer of all rights, accessories, privileges, as well as the enforcement of the title, if any.
The sale may be financed or paid in full. In the case of payment in full sales, the maximum settlement period will be up to 72 hours, counted from the assignment or accounting movement of the portfolio and up to the effective collection of the sale.
Supervised entities must include the sale of a loan portfolio in their policies and include it in their business plan and annual budget, analyze each sales contract and ensure that, if the sale is made to a natural or legal person operating in the financial market, it is registered in the registry of the Superintendency of Banks ("SIB"). In addition, they must ensure that the portfolio to be sold meets the requirements of the credit risk classification rules. The Regulation prohibits supervised entities to establish portfolio return clauses in their agreements between the parties for periods exceeding 45 days after the sale transaction is formalized, and to provide all the information required by the SIB.
In addition, the minimum content of loan portfolio sales contracts is foreseen in the Regulation. The obligation to keep informed to the Information Center those debtors assigned for at least 3 years after the sale of the credit must be included. These contracts must be available to the SIB.
In cases where the sale is made with a related party of the supervised entity, the transaction must be carried out only as payment in full and the communication to the SIB must be submitted within 10 business days from the execution of the contract, including all the information required in the Regulation. Likewise, in cases where the sale is made with a non-related party of the supervised entity, the communication of the transaction must be made within 10 business days from the date of execution the contract, regardless of whether it is a payment in full or credit sale.
The supervised entity must inform the assigned debtor or co-debtors about the sale made within 10 working days from the date of signing the contract and, in no case, may it carry out any collection management on its own behalf or on behalf of third parties, assuming the character of manager or agent.
In addition, supervised entities must apply the rules for the prevention of Money Laundering, Financing of Terrorism and Proliferation of Weapons ("AML/FT/FP") related to the proper administration, management and mitigation of AML/FT/FP risk.
In the event of non-compliance with the provisions set out in the Regulation, supervised entities shall be subject to the penalties provided therein.
Through Resolution No. 5 Minute No. 20 dated May 17, 2024, the Board of Directors of the Central Bank of Paraguay (“BCP”) approved the execution of the “Digital Economy” Pilot Program (“Program”), which will oversee the Superintendency of Banks.
The Program is focused on supporting Micro, Small and Medium-sized Enterprises (“MSMEs”), with the objective of advancing in the modernization and optimization of financial transactions. This Program offers multiple benefits, both for the sponsoring and participating entities, such as improvements in the efficiency and security of transactions, reduction of risks and costs associated with payments, among others.
All financial institutions supervised by the BCP are eligible to participate voluntarily and at no cost. Entities interested in joining the program must send the application and participation form to the BCP. Within two working days of receiving the application, the BCP will confirm the registration and participants will be required to develop a work plan.
The work plan should be detailed and include activities such as education and training of MSME members, conducting an initial diagnosis of current payment methods and developing a strategy for the transition to electronic payments. Interested entities will execute their work plan, monitoring progress in the implementation of electronic payments.
Interested entities must sponsor at least eight MSMEs located in any of the country's six most populated departments or districts. However, they may propose an alternative location, if it is adequately justified in terms of contribution to the objectives of the program.
The duration of the Program will be 1 year for companies that do not have an account in the financial system and 6 months for those that already do.
MSMEs interested in participating must submit a letter of commitment signed by their representatives, committing to participate as sponsored companies.
Both sponsored companies and participating entities may receive certifications recognizing their successful adaptation to electronic payment systems. Sponsored companies may receive distinctions or recognitions from the participating entities, and participating entities with outstanding quantitative performance will receive distinctions from the Project Committee.
Vouga Abogados advised Azeta Group, one of the most important economic conglomerates in the country and active in various sectors of the economy, in the acquisition of 50% of the capital stock of Biggie S.A., the first and largest chain of 24-hour convenience stores.
This transaction represents a significant milestone for Azeta Group, as will integrate this business among other retail activities. Also, this is one of the largest (if not the largest) acquisitions so far in 2024.
Vouga's team, led by partners Rodolfo G. Vouga and Perla Alderete, together with senior associate Cecilia Vera and associates Belén Rodriguez, Camila Dutra, and Lie Kawamura, advised the acquiring party on all aspects of the transaction, from structuring to closing. This included due diligence, drafting and negotiation of the transaction documents, financing, and regulatory approvals.
Furthermore, the National Competition Commission (CONACOM) has unconditionally approved the transaction during phase 1 of its evaluation. Vouga Abogados was responsible for the notification process before CONACOM on behalf of both parties. The partners Rodolfo G. Vouga and Rodrigo Fernández de Nestosa led Vouga team, with the support of senior associate Cecilia Vera and associate Lie Kawamura.
En la sesión de fecha 22 de mayo de 2024 se otorgó media sanción al proyecto de ley modificado que establece distintos permisos para trabajadoras gestantes y multas para empleadores quienes incumplan la Ley:
Este artículo tiene únicamente fines informativos generales y no debe ser considerado como asesoría legal puntual. Si precisa asesoramiento específico no dude en contactarnos.
El Instituto de Previsión Social (“IPS”) emitió una resolución por la cual amplió la Resolución C.A. N° 029-002/2024, dejando sin efecto las resoluciones que incrementaban el haber mínimo jubilatorio de los jubilados y pensionados en un 50% (Resolución C.A. N° 004-001/2020) y en un 75% (Resolución C.A. N° 017-001/2021), quedando vigente el 33% como haber mínimo jubilatorio para los nuevos jubilados.
Por medio de la Resolución CA N° 031-001/2024 de fecha 7 de mayo de 2024 (la “Resolución”), el IPS resolvió:
Este contenido tiene únicamente fines informativos generales y no debe ser considerado como asesoría legal puntual. Si precisa asesoramiento específico no dude en contactarnos.