SD 4248: Scope Analysis Deferral of Loan Installments under the Context of the Coronavirus Pandemic in Bolivia

Abstract

The aim of the Supreme Decree 4248 of May the 28^th, 2020 was to extend the exceptional payment deferral of loan installments throughout the territory of the Plurinational State of Bolivia, in the health situation context, extending it for an additional 3 months (counting es 6 months deferral, although not in all cases). Law 1319 of August the 25^th, 2020, modifies previous law of April the 1^st, 2020, 1294, and instructs the automatic deferral until December the 31^st, 2020.

With this new perspective, the two components of the credit relationship: Client and Financial Entity, linked by the credit contract which establishes a contractual obligation between the debtor duty bound to pay the borrowed money and the creditor of financial entity, now in the dues’ deferral position, they are seen in a waiting time that implies not the solution of the economic situation imposed by the pandemic context, but of elapsed time and new alternatives, reaching the phrase greatest breadth: we must be reinvented in 2021. 

The normative analysis proposes that legal norm and its economic and financial effect must be understood in the context of the pandemic reality and, thus, estimate the future binding effects of Coronavirus in our economy.