Last updated: Tuesday April 21st, 06:00pm

Special Report "COVID-19 in Central America" on special measures taken in each country of our region prepared by the multidisciplinary team of Consortium.

The information contained in this publication is for information purposes only and does not constitute legal advice. The information is constantly updated and is subject to change.

Last updated: Tuesday April 21st, 06:00pm

Copyright © 2020 Consortium Legal

GUATEMALA ......................................................................................................................................................... 4

Government Measures ........................................................................................................................ 4 Migration Measures .......................................................................................................................... 11 Labour Measures ............................................................................................................................... 13 Financial Measures ............................................................................................................................ 13 Tax Measures .................................................................................................................................... 14

EL SALVADOR ..................................................................................................................................................... 15 Government Measures ...................................................................................................................... 15 Migratory Measures .......................................................................................................................... 22 Labour Measures ............................................................................................................................... 23 Financial Measures ............................................................................................................................ 24 Tax Measures .................................................................................................................................... 25

HONDURAS ......................................................................................................................................................... 27 Government Measures ...................................................................................................................... 27 Migration Measures .......................................................................................................................... 30 Labour Measures ............................................................................................................................... 32 Financial Measures ............................................................................................................................ 35 Tax Measures .................................................................................................................................... 45

NICARAGUA ........................................................................................................................................................ 53 Government Measures ...................................................................................................................... 53 Labour Measures ............................................................................................................................... 53

COSTA RICA ........................................................................................................................................................ 55 Government Measures ...................................................................................................................... 55 Migration Measures .......................................................................................................................... 59 Labour Measures ............................................................................................................................... 61 Financial Measures ............................................................................................................................ 67 Tax Measures .................................................................................................................................... 69

GUATEMALA

Government Measures

• On April 19, the President of the Republic reformed the Presidential Provisions in Case of Public Calamity and Orders for Strict Compliance issued on April 12, 2020 (the "Presidential Provisions"), which were published in the Official Gazette on April 20.

• The amendment to the Presidential Provisions extended to Monday, April 27, at 4:00 a.m., the validity of the Presidential Provisions issued on April 12, 2020. The current Presidential Provisions provide for the following

• Activities that continue to operate without a closure option:

• The fifth Provision lists the activities that shall continue to operate, with no closure option. Among these activities are:

✓ Private emergency care centers, health care facilities, medical and veterinary laboratories

✓ Water supply service;

✓ Garbage removal service;

✓ Private security services and transportation of valuables;

✓ Aircraft service;

✓ Telecommunications, telegraph and mail services (including internet, television and radio providers);

✓ National port and airport system and port and airport security entities and systems;

✓ Heavy cargo transport with circulation restrictions in the municipalities of Guatemala, Villanueva and Mixco from 4:00am to 9:00 am and from 2:00pm to 5:000 pm;

✓ Food industry and agricultural production;

✓ Pharmaceutical Industry;

✓ The industry of products for health and personal hygiene; and

✓ The energy industry.

These companies will have to adjust their schedules in order to avoid transferring personnel between 6 p.m. and 4 a.m. the following day. If they are unable to make temporary changes to the timetable for activities during restricted hours, employers must provide transport for their staff, duly authorized by the Ministry of the Economy.

• Activities not listed:

Except for the activities specifically listed, all commercial or service establishments must be closed 24 hours a day.

Therefore, in our opinion, there is no longer any possibility of applying for an operating permit for an activity, it being understood that all operating and transport authorizations previously granted by the Ministry of Economy have been revoked.

• Time Restricted Activities:

The following services or shops may operate only within the hours of 4:00 am to 6:00 pm:

✓ Supermarkets, grocery stores and convenience stores.

✓ Restaurants providing home delivery or take-out service. Duly identified home service may operate 24 hours a day.

✓ Hotels, pensions and their corresponding food service in the guests’ rooms, under their strict responsibility.

✓ Banks, finance companies, insurance companies and cooperatives using special counters or procedures or self-service.

✓ Agricultural, livestock, phytozoosanitary and hydrobiological resources activities.

✓ Livestock activities.

✓ Transportation of humanitarian aid.

✓ Cantonal and municipal markets with restricted opening hours from 4:00 to 12:00.

These activities may not operate within the hours of 6:00 p.m. to 4:00 a.m. the following day.

✓ Freedom of locomotion:

Restrictions on freedom of movement are established for the inhabitants of the Republic of Guatemala, including the transit and movement of persons, crew, passengers, vehicles or all types of private land transport and passengers between 6 p.m. and 4 a.m. the following day. We understand that this restriction established in the eighth provision does not apply to the transportation of personnel, as long as the employers provide the same and it is duly authorized by the Ministry of Economy. We further understand that the restriction does not apply to the transport of cargo by air and sea. The inhabitants must assume responsibility and comply with the rule of social distancing, they must stay in their residence and leave only for what is strictly necessary, subject to the following restrictions

• Locomotion at home: The inhabitants of the territorial departments of Guatemala, Sacatepéquez, Chimaltenango and El Progreso are limited only to locomotion, circulation and transit in the departmental district from Monday, April 20 at 0:00 a.m. until Monday, April 27 at 4:00 a.m. Inhabitants of the departments without restriction may move freely but not to the above-mentioned departments. An exception is made for persons working in departments other than their own and providing services to entities that must continue to provide their services, which must be checked and duly authorized.

• People who live near rivers and lakes and purchase food and medicine through these routes may continue to do so within the permitted time frame.

• Exceptions are made for those who, in accordance with the Presidential Provisions in force, have to perform public functions, the chronically or terminally ill, as well as emergency transfers for health reasons, and officials who enjoy immunity are not restricted from moving about in the performance of their duties, but the authorization does not extend to their companions.

• Private and public health service personnel have priority and freedom of movement.

• Persons exposed and at high risk to their health: By virtue of the risk of contagion, the freedom of locomotion is restricted in permitted markets and shops in the national territory for persons over 60 years of age, persons with chronic diseases, pregnant women and children. This limitation applies until April 20 at 4:00 a.m. In the case of persons over 60 years of age who, due to the nature of their public function, work or profession, must continue to carry out their activities, they may exceptionally continue, but employers must take extreme health measures under their strict responsibility and have the person's authorization.

• Recreational trips: The locomotion, circulation and transit of the inhabitants is restricted for any type of trip or transfer of a recreational, social or family nature by any means (land, area, sea).

• Personal or visiting activities may only be carried out within the municipal district and within the hours allowed. Each inhabitant is responsible for following this restriction.

• Duly authorized and verified military, official, ambulance, fumigation and emergency flights are permitted.

✓ Prohibition to go to public places: It is prohibited to visit for personal, family or social recreation on beaches, lagoons, rivers or similar, as well as to attend any activity in public areas, tourist or historical places.

• Other restrictions:

• Events of any kind and any number of people are prohibited anywhere.

• Sports, social and cultural activities are prohibited.

• Suspension of urban and extra-urban transport.

• Prison visits are prohibited.

• Visits to senior citizens in hospitals are prohibited.

• Suspension of religious activities.

• Hospital outpatient clinics are closed to allow for emergencies

• Hoarding of food and medicine is prohibited

• All shopping centres, related or similar are closed except for premises that provide essential public services or are included in the exceptions.

• Classes are suspended at all levels until April 30, 2020.

• The sale, sale and consumption of alcoholic and fermented beverages are prohibited from 3 p.m. until 4 a.m. the following day. The consumption of alcoholic beverages in public places is prohibited

• On April 3, 2020, the Congress of the Republic approved the Law of Economic Rescue to Families due to the effects caused by Covid-19 (Decree Number 13-2020 of the Congress of the Republic). This law was published on April 8 and entered into force on April 9th, 2020. The purpose of the law is to establish the mechanisms to compensate and mitigate the economic crisis in the presence of Covid-19 within the national territory. Social compensation measures aimed at the inhabitants of the Republic will be applied, with emphasis on the most vulnerable population. In addition, through this decree, numbers 2 and 3 of Article 15 of Decree number 12-2020 of the Congress of the Republic (Emergency Law to Protect Guatemalans from the Effects of the COVID-19 Pandemic) were reformed. The main economic measures approved by this law are the following:

✓ Fondo Bono Familia: The objective is to support the population most affected economically by the emergency measures derived from the COVID-19 pandemic.

This fund will be executed by the Ministry of Social Development, through the banking system, with an amount of up to Q.6,000,000,000.00, to grant contributions of up to Q.1,000.00.

Excluded from this benefit are people who live in a home whose monthly electricity consumption exceeds 200 kWh verifiable through the last electricity bill corresponding to the month of February 2020, those who are public servants, those who have administrative contracts for service provision in force in the public sector, or those who receive benefits from any pension system.

✓ Employment Protection Fund: The purpose is to support workers in the private sector whose employment contracts, in accordance with labour legislation and as a result of the State of Public Emergency, have been suspended, duly authorized by the Ministry of Labour and Social Security.

This fund will be administered by the National Mortgage Credit and executed under the requirements and guidelines of the Ministry of Economy in coordination with the Ministry of Labor and Social Welfare. The fund will be constituted for an amount of up to Q2,000,000,000.00, which may be granted to the authorized beneficiaries for a fixed amount of Q.75.00 per day per worker, which will be credited and delivered taking into account the availability of existing funds. Said economic benefit is exempt from any type of deduction, withholding and tax.

✓ Working Capital Credit Fund: The purpose is to finance directly, or through the necessary financial mechanisms, working capital with soft conditions to maintain productive capacity. The fund will be up to Q,3,000,000,000.00.

The final destination of the resources will be used exclusively for the granting of credits with soft conditions, for a maximum amount of Q.250,000.00 for individuals or corporations in order to finance working capital and the continuity of the business operations.

The Board of Directors of the National Mortgage Credit of Guatemala will define the requirements to become a beneficiary, as well as the processes for the management of financial resources by the supervised financial institutions and the credit unions.

• On April 3rd, 2020, the Congress of the Republic approved Decree number 15-2020, Additional Measures to Protect the Population from the Economic Effects Caused by the COVID-19 Pandemic. It is pending approval by the President of the Republic and publication in the Official Gazette.

The purpose of this law is to establish additional economic and financial measures to enable Guatemalan families and micro, small and medium-sized enterprises to deal with the economic consequences of the global health emergency caused by COVID-19, and to ensure the provision of basic services. It also regulates a capital protection fund for educational centers.

✓ Basic Services: In order to avoid the interruption of basic services, the following emergency measures are established to be applied by the entities providing water,

cable, electricity, telephone and internet services, whether public or private, and will be applicable during the validity of the State of Calamity:

• The provision of these services may not be suspended.

• No moratorium charges, interests, administrative expenses, or any other penalty may be applied.

• Users who are unable to make the corresponding payments for consumption to the service providers may sign payment agreements in up to 12 installments,

without any surcharge, starting in the month following the month in which the State of Public Calamity has ceased. The service providers must sign the agreements immediately.

• The National Mortgage Credit will make available, to grant credit to drinking water and cable service providers, a specific fund for an amount similar to the sum of all the payment agreements that they enter into with their respective users.

✓ Access to the Capital Protection Fund: The Crédito Hipotecario Nacional (CHN) will grant credits from the Capital Protection Fund for the educational centers referred to in Article 9 of Congressional Decree No. 12-2020 for payment of fees and payroll for teaching, administrative, and service personnel. The maximum amount of the credit is the monthly payroll amount of the educational entity in question for up to six months.

✓ Conditions of the credits: The loans that the CHN will sign with the entities that provide drinking water services will pay interest that is no higher than the average passive interest rate of the banking system. The credits are not subject to any formalities other than the presentation of the legal accreditations of the service provider, a list of collections for the last 3 months and the invoices that will be the object of the loan. The procedure cannot exceed 5 working days.

✓ Validity: Decree number 15-2020 of the Congress of the Republic will enter into force the day after its publication in the Official Gazette.

• On March 24th, 2020, the Congress of the Republic approved the Government Decree 7-2020 by which the state of calamity is extended for 30 more days. The state of calamity will be in force until the beginning of May 2020. During this period the President may take the measures he deems appropriate. See decree

• On March 25th, 2020, the Congress of the Republic approved the Emergency Law to Protect Guatemalans from the effects caused by the Pandemic Coronavirus Covid -19 (Decree number 12-2020 of the Congress of the Republic). This law contains health measures, social impact measures, budget expansion, allocation of funds to address the economic impact on the population, and fiscal policy measures. For this law to enter into

force, it must be sanctioned by the President of the Republic and published in the Official Gazette. In the following link you will find a summary of the Decree 12-2020. Please note that this decree has not yet entered into force.

• With respect to public entities and state bodies:

Executive Branch

- On March 31st, 2020, the Registrar of Companies announced that, although it is not attending the general public, applications for new companies on the MiNegocio platform and online applications for companies and trading assistants are being transmitted electronically to the Registry's servers.

MiNegocio advisors and operators - remotely - as well as SAT delegates, are carrying out qualifications and registrations of those that meet the requirements, and if they were transmitted with Advanced Electronic Signature it is returned to the user electronically.

The other applications that are not managed with this type of signature are qualified and operated by the Registry. However, the return is being done physically by appointment of those interested, from 8:00 to 12:30.

The General Property Registry

Resumed its activities for its users and public service on March 27th, 2020, the offices in zone 1 (Central Registry), Montúfar Office (located in the Montúfar Shopping Center zone 9) and Banrural Agency #33, which are operating from 9:00 to 15:00 hours for normal management; however, for entry of large transactions, it is attending from 9:00 to 14:00 hours. Additionally, they are taking the users’ temperature before the entrance and they ask users to arrive with a mask to be able to enter any of their offices.

The Association of Lawyers and Notaries of Guatemala has begun distributing notary and forensic stamps in the following banking agencies: (a) Banrural, located in zone 9; (b) BAM, located in zone 4 and in zone 9; and (c) CHN, located in zone 1.

• The presentation of Environmental Files (Environmental Permits) is suspended. See press release

• State Ministries are open to address the crisis and only essential services are in operation

Judicial Branch

On March 17th, 2020, the Supreme Court of Justice agreed to suspend the calculation of the legal terms and deadlines granted to individuals and judicial authorities in all matters and instances, which will be resumed the day after the expiration of the state of calamity agreement - Government Decree 5-2020 approved by the Congress of the

Republic of Guatemala. It also ordered the suspension of the administrative and jurisdictional activities of certain courts, so that currently only essential services for the administration of justice are provided, as well as those procedures that must be carried out without delay so as not to violate fundamental rights. The following courts were ordered to continue their regular work: a) Peace Courts throughout the Republic; b) First Instance Criminal Courts; c) First Instance Courts for Children and Adolescents in Conflict with Criminal Law; and, d) Chambers of the Court of Appeal and Courts of the same category, but some courts are closed, among them: (a) The civil courts of first instance of the Republic of Guatemala; (b) The labour courts of the national territory; and (c) The Supreme Court of Justice.

Legislative Branch

The Congress of the Republic is operating, and measures are being taken with respect to its personnel.

Migration Measures

Air, land and sea borders are closed throughout the national territory, with the following exceptions and considerations

1) The entry of: a) Guatemalans. b) Permanent residents. c) The diplomatic corps accredited in the country. d) Exceptional cases duly determined by the corresponding administrative authority,

after approval and direct supervision by the governing body for health and accompaniment and coordination by the Ministry of the Interior.

All persons described above shall be subject to mandatory quarantine without exception, immediately upon entry into the national territory, including those who enjoy any kind of immunity or prerogative.

For isolation and quarantine cases the following should be understood:

a) Isolation is the separation of a patient who was diagnosed with COVID-19 from his or her entire family and third parties, until he or she is considered recovered and out of the stage where he or she can infect other people.

Medical care of patients diagnosed with COVID-19 may be provided in hospitals or facilities designated by the government or responsible official or at the individual's residence.

b) In the event of quarantine of subjects suspected of having been exposed to COVID-19, they should be separated from all other persons in their family, personal and social

environment for a set period of time, which will serve to rule out signs of the disease and prevent contagion to others.

Quarantine of persons exposed to COVID-19 may be carried out at the person's residence, in hospitals or facilities designated by the government or responsible official, in accordance with the competent authority, the need and for the time stipulated in each case.

Failure to comply with this provision will subject both individuals and public officials to administrative, civil and criminal liability.

a) Foreign persons are allowed to leave the territory of the Republic of Guatemala, under their own strict responsibility. They may leave by the border of the States authorized in their own regulations.

b) Exemption from the prohibition on entry or exit via the borders of the Republic:

- The transport of correspondence and air, sea and land cargo for import or export

- The pilots and all the crew of the transports must comply with the sanitary dispositions issued by the Ministry of Public Health and Social Assistance to arrive to Guatemala, during their stay in the national territory and must leave immediately after the delivery of the load or in their case be subject to the obligatory quarantine.

No foreign crew or passengers are allowed to enter the country, except as mentioned above.

Persons who willfully or negligently violate the provisions of the presidential migration will be criminally and civilly liable for the consequences that may arise from infection to others, as well as administrative and punitive sanctions.

On April 6th, 2020, the Guatemalan Migration Institute issued a statement through its website and social networks, which stipulates that foreign nationals who entered Guatemala regularly for legal purposes and who have been authorized to obtain a tourist visa, but who, due to provisions decreed by the Government of Guatemala, have not been able to leave the country, may remain in the territory during the State of Calamity decreed and its extensions are in force. This measure applies to foreigners who entered the country after March 5thand while the State of Calamity and any extensions are in force.

In the case of foreigners who remain irregularly before March 5th, 2020, they must resolve their immigration status at the Central Immigration Building.

Labour Measures

• Public and private sector employment activities are suspended (except for essential services).

• IGSS, IRTRA, INTECAP: It is approved that the fees to be paid to these institutions for the months of March, April and May be deferred. They may be paid without interest or surcharges of any kind as follows:

a) Payment in the corresponding periods. b) Deferred payment in the months of July, August and September. c) Deferred payment for 18 months as of July 2020.

The Ministry of Labor established a form to request or register collective or individual suspensions carried out because of the crisis by Covid-19. Only employees of companies that receive authorization by submitting the form will be subject to payment of State aid for suspension of contracts.

Financial Measures

Monetary Board: On March 23rd of this year the Monetary Board issued Resolution JM-32-2020 through which it issued special temporary measures to attend to the situation derived from the pandemic called COVID-19. Said temporary measures, that went into effect on the same March 23, will have a term of 180 days and can be observed by the financial institutions subject to the supervision of the Superintendence of Banks of Guatemala.

Through said measures, the financial institutions are empowered to establish, among others, payment waits or deferrals that take care of the particular situation of the debtor, without such circumstances being considered a factor of greater risk, keeping the category of the credit asset during the term of the temporary measures. Derived from the above, the calculation of arrears is suspended for these cases during the term of these temporary measures.

We recommend reviewing the information that is found in the social networks of each bank since each one has taken its own measures.

Subsequently, the Congress of the Republic of Guatemala authorized the Emergency Law to Protect Guatemalans from the Effects of the Coronavirus Pandemic COVID-19 (Decree 12-2020). Said regulation establishes that banking institutions, upon simple request of the interested parties, will be granting deferrals, as the case may be, to the expiration of credit card quotas, credits with fiduciary guarantee, pledge or mortgage for housing, for the quotas of two months; as well as those granted in the micro, small or medium enterprise and any creditor of the State Institutions, for the quotas of three months. Additionally, it is established that payments may be deferred for a period of six months without interest on arrears, as from the end of the crisis of the public calamity of COVID-19.

We recommend reviewing the information that is in the social networks of each bank since each one has taken its own measures.

Tax Measures

The SAT-DSI-280-2020 resolution declares the days of March 24, 25, 26, 27, 30 and 31, 2020, and April 1, 2, 3, 6, 7, 8, 13 and 14, 2020, inclusive, as unfit for tax administration. The foregoing has the effect of deferring the calculation of the deadlines. Therefore:

1) The Tax Administration may not carry out inspection and verification procedures within the days considered as non-working days.

2) The Tax Administration may not require taxpayers to comply with their tax obligations, including:

a) The Income Tax (ISR), which is paid and declared, quarterly, of which the annual affidavit must be submitted, together with the corresponding payment of the fourth quarter no later than 31/03, must be submitted on 15/04.

b) ISR withholdings, in accordance with Article 48 of the Tax Update Law, must be paid by 28/04.

c) The Value Added Tax (VAT) for the month of February, which was to be declared and paid no later than 31/03, must be presented on 15/04.

d) VAT withholdings, for the month of March, according to Article 54 B of the Value Added Tax Law, must be paid by 28/04.

3) The calculation of the 30-day period established in the notified hearings, are suspended for the period of the non-working days, so they start again on 15/04.

4) The Tax Administration may not require taxpayers to appear for summonses, or to submit information.

5) The computation of the term to file appeals, according to the tax legislation, is suspended for the term of the non-working days, so they start again on 04/15.

The resolution establishes that the disqualification of days may be extended, in the event that the exceptional circumstances that gave rise to it continue to exist.

Decree 12-2020 additionally establishes the following measures:

Exemption from all import and value added taxes and customs duties on all donations received in favor of the National Coordinator for Disaster Reduction - CONRED - and churches, organizations and charitable associations, duly authorized and registered in the Register of Legal Persons of the Ministry of the Interior, while the state of public calamity and its possible reforms are in force.

Taxpayers subject to the Solidarity Tax may defer payment to the second quarter of the 2020 fiscal year, and may make payment up to 30 September 2020 in cash, without generating any penalty, fine or surcharge. However, whoever chooses this ISO deferral may not dismiss any worker until he has finished paying it unless there is a justified cause.

EL SALVADOR

Government Measures

1) Decree No. 593 of the STATE OF EMERGENCY, which declared a state of national emergency for a period of 30 days. This regime was extended on April 12, 2020, by means of Legislative Decree No. 622, for a transitional period of 4 days, that is, until April 16th, 2020. On Thursday, April 16, 2020, the Legislative Assembly approved an additional extension of the "State of National Emergency" regime, through Legislative Decree No. 631, for a period of 15 days, that is, until May 1, 2020. The State of National Emergency allows the Government to take certain measures to safeguard public health and the population but does not imply the suspension or restriction of constitutional rights and guarantees. A state of exception, as opposed to a state of emergency, empowers the Government and the Authorities to limit constitutional rights such as freedom of transit, peaceful assembly of people and the right not to be forced to change one's residence. For the time being, only the state of national emergency is in force.

2) EXECUTIVE DECREE number 19: On April 13, 2020, the Ministry of Health issued a new Executive Decree in order to declare the territory of El Salvador as an epidemic zone subject to sanitary control to contain the spread of the COVID-19, as well as establish the individuals and entities could commute and / or carry out their operations in Salvadoran territory. Executive Decree 19 cameto establish the individuals and entities that could commute and / or carry out their operations in Salvadoran territory. Executive Decree 19 was enacted to repeal the previous Executive Decree 14, issued with the same measures. Executive Decree 19 entered into force on April 13, 2020, the date of its publication in the Salvadoran Official Gazette, and its effects will last 15 days, ending on April 28, 2020.

3) EXECUTIVE DECREE number 20: On April 13, 2020, the Ministry of Health issued a new Executive Decree in order to establish guidelines and develop the conditions, time and lockdown compliance, surveillance or observation of individuals subject to such control measures determined by the Ministry of Health.

Below we have included a brief summary of the measures adopted by the Government of El Salvador, in accordance with Executive Decree 19:

I. SANITARY MEASURES 1) Mandatory lockdown for the entire Salvadoran population, except for previously

authorized cases. 2) Who fails to comply with the mandatory lockdown and after having been tested

by medical personnel and classified as a suspected case, must keep a controlled lockdown for 30 days, to determine the presence of COVID-19 Furthermore, if said individuals were Furthermore, if said individuals were found to be driving, the motor vehicle will be confiscated by the Authorities.

3) Every individual must allow the entry of Ministry of Health personnel to their households and premises, in order for them to evaluate sanitary measures.

4) Only Salvadoran citizens, foreigners residing in El Salvador, members of diplomatic missions, and of a consular office in the country, as well as members of their families, who prior to entering Salvadoran territory, will be able to enter the national territory, will be tested to determine what sanitary measures they must undergo.

5) The obligation to wear masks is established at all times and throughout the territory.

II. INDIVIDUALS AUTHORIZED TO CIRCULATE ARE THE FOLLOWING:

1) One individual per family in order to buy: food and beverages, pharmaceutical products or any necessity goods, as well as go to any healthcare center, only twice a week. Said individual must carry an authorization issued by their family members in which he is named to circulate in order to buy.

2) Employees authorized to commute to their workplaces, in accordance with Executive Decree 19.

3) Individuals who assist and care for children, older adults, people with disabilities or vulnerable people who suffer chronic illnesses, which must move to a place due to an emergency or to any periodic medical attention.

4) People who, due to indispensable reasons, must go to financial and insurance entities.

5) Employees (duly identified) from health agencies, pharmacies, medical personnel, nurses, paramedics, hospital personnel, laboratories, private clinics and any other related employees.

6) People who, due to unforeseeable circumstances or force majeure or a situation of proven extreme need, must go to specific places to solve such causes.

7) Public employees which are working to fight the health pandemic, including: the Ministry of Health, FOSALUD, CONNA, ISNA, firefighters, the Police, Immigration Authorities, Customs Authorities, the Anti-trust regulator, the Salvadoran Consumer Protection Authority, amongst others.

8) Members of Town Councils, Civil Protection Authorities, Metropolitan Police Agents, administrative employees of Town Councils, as employees of municipal cemeteries, and any individual that works at a municipal market if this individual food, or any of the following goods: cleaning goods, medicines or pharmaceutical goods or any necessity goods.

9) Members of Town Councils, Civil Protection Authorities, Metropolitan Police Agents, administrative employees of Town Councils, as employees of municipal cemeteries, and any individual that works at a municipal market if this individual sells food, or any of the following goods: cleaning goods, medicines or pharmaceutical goods or any necessity goods.

10) Some magistrates, judges and court employees who cannot stop providing their constitutional activities, as well as some employees of the Supreme Court of Justice and the Institute of Legal Medicine.

11) Individuals or entities which provide services related to the distribution of food, essential items or items of first need.

12) Police officers and employees, the Salvadoran Army, and ambulances. These employees must be duly identified.

13) Congressional representatives and other administrative employees of the Salvadoran Congress and the Supreme Electoral Court.

14) Individuals or entities transporting and distributing food, first need and essential items, or whose activity is the importation or exportation of any type of merchandise.

15) Individuals who need to attend to a doctor’s appointment, including dentist emergencies, as well as individuals who need to take medical exams. These individuals must carry the corresponding documents to prove this.

16) Persons who engage in other necessary economic management activities, duly authorized.

III. The following entities that are expressly allowed to carry out their services: 1) Call Centers whose business activity consists in the sale and distribution of

medicines, takeout food, airline customer service, electricity services, telecommunications services, banking and financial services, as well as medical services.

2) Food production industry and the entire supply chain, except for chips, snacks, goodies, candies or similar products.

3) Water distribution industry. 4) Industries which produce and distribute cleaning and hygiene products, as well as

personal care products. 5) Pharmaceutical industry and theirits entire supply chain. 6) Packaging industry. 7) Agriculture and its entire supply and distribution chain. 8) Cattle breeding and its entire supply and distribution chain 9) Beekeeping activities and its entire supply and distribution chain 10) Fishing activities and its entire supply and distribution chain 11) Industry related to agriculture and the entire supply and distribution chain. 12) Industry related to agriculture and its entire supply and distribution chain. 13) Textile industries related only to the manufacturing of bed sheets, medical robes

and bouffant caps, scrubs, masks and any other medical equipment that may be needed.

14) Bakery industry that covercovers basic family needs 15) Cosmetic industry, provided that such products are transformed into medicines.

16) Export Companies in the product dispatch and administrative area, related to export contracts fulfillment, with previous authorization of the Ministry of Health and the Export and Investment Promotion Agency of El Salvador (PROESA)

17) Companies’ administration department who carry out investment procedures, with previous authorization of the Ministry of Health and PROESA.

18) Certain automobile repair shops, who carry out their operation exclusively to insurance companies, patrols, vehicles of authorized public entities, telecommunications companies, electricity companies, public transport and cargo. duly authorized by the Salvadoran Ministry of Health

19) Hardware stores, operating with 30% of their capacity and only attending orders from the Salvadoran Police, the Salvadoran Social Security Authority, the Salvadoran Ministry of Health, The Health Solidarity Fund, the Salvadoran Water Institute (ANDA), the Salvadoran Ministry of Transportation and Public Works, among other entities that are related to repair and construction of facilities to deal with the pandemic.

20) Financial services, including banks, savings banks, financing companies, savings and lending entities, insurance entities, debt securitization, stock market, brokerage entities, stock market products and entities in charge of pension funds; only operating with 50% of their capacity.

21) Veterinary clinics, in case of emergencies. 22) Security services. 23) Electric Generators 24) Transportation services, operating with 50% of their capacity 25) Gasoline stations. 26) Private transportation. 27) Taxis. 28) Freight transportation of the industries authorized by the Decree 29) Freight Transportation that enters in Salvadoran customs for commercial

exchange. 30) Propane gas distribution services. 31) Public and private drinking water distribution services, as well as its construction

and maintenance. 32) Postal services, mail, parcels. 33) Funeral and cemetery services. 34) Aviation support services such as dispatchers, ground support, loading and

unloading of aircraft, crews, maintenance of all types of equipment used in airports, Aeronautical maintenance and such.

35) Essential personnel for the payment of payrolls of companies. 36) Public accountants and administrative staff who perform the tax obligations of

companies.

IV. CIRCULATION COMPLIANCE, SANITARY MEASURES AND IDENTIFICATION:

1) Vehicle Circulation: The circulation of private vehicles will be allowed for the abovementioned industries authorized to operate. Only one passenger per vehicle is allowed. In any exceptional or justified cases, more than one passenger per vehicle will be allowed, as long as they are accompanying adults to medical treatments or picking up any relative member from their workplace at very early of high hours.

2) Authorized Employees: must carry with them: o Use of Mask o Use Mask o The company's identification card. o Identity Document. o An authorization letter issued by their employer or by the head of human

resources of the company, with the company and the employee´s information. The letter must include the following:

▪ Activity and name of the company or the employer, name and information of the employee, position and duties of the employee, working schedule, and address and telephone number of the employer.

3) Authorized Entities: must comply with the following sanitary measures: o Keep social distancing. o Gel alcohol dispensers. o Wash their hands constantly. o Provide the Employees a mask at all times. o Cover their mouths when sneezing or coughing. o Avoid touching their faces. o Comply with all necessary measure to measures to ensure its employees from

aavoid any possible infection, among which are: social distancing and aseptic tasks.

4) The Ministry of Labor will verify compliance with the provisions of the Decree N° 19 in the workplaces.

5) All companies are forced to send their employees over 60 years old, pregnant women, and people with chronic diseases, such as kidney failure, cancer, lupus, diabetes, among others, to their homes.

In El Salvador, on April 4th of this year, in connection with measures to contain the COVID19 pandemic, the government commissioners announced at a press conference the approval of Executive Decrees No. 16, 17 and 18 regulating measures for the import and use of tests for the detection of COVID-19. The guidelines are intended for public transport and the restriction to beaches, spas and tourist centers.

The measures envisioned have been summarized mainly in the following:

Executive Decree N°. 16

In order to provide certainty in the results of the testing of persons suspected of having COVID-19 and to avoid doubtful results caused by low specificity tests, the measures for controlling the import and use of COVID-19 tests are set forth.

Therefore, centralizing and decreeing that only the Ministry of Health is responsible for carrying out the COVID-19 Detection Tests, and it will be this institution that will have the exclusive handling and storage of the tests.

The import, distribution and use for COVID-19 tests will be subject to the authorization of the Ministry of Health.

Executive Decree N°. 17

In order to protect the health of the population throughout the national territory and reduce the spread of COVID-19, the following guidelines will be implemented to regulate preventive health measures for public passenger transport:

Public passenger service units shall apply the following preventive health measures:

a) Mandatory use of masks for both the motorist and other support employees. b) Have alcohol available at the entrance of the unit, through dispensers, for the use of all

users. c) Disinfect and keep disinfected the public transport units at least three times a day. d) Transport a maximum of two passengers per seat in the bus and minibus units.

The MOP, through the VMT, with the support of the NCP, will be responsible for prevention, attention and control of the guidelines described above, and may impose sanctions in the event of any violation.

Executive Decree N°18

Executive Decree No. 18, designed to verify full compliance with the Law on Temporary Restriction of Concrete Constitutional Rights to deal with the COVID-19 Pandemic, has been drafted and the following extraordinary health measures have been taken to prevent the concentration of people in recreational places such as beaches, spas or tourist resorts, places that constitute an imminent and potential risk of contagion and spread of the virus:

a) Persons for directly recreational purposes are prohibited from staying on beaches, lakes, spas or tourist centers throughout the national territory. Those persons whose stay is strictly necessary for fishing activities and others related to maritime and maintenance work will be allowed.

b) The Civil Protection commissions, with the support of the PNC, shall be responsible for prevention, attention and control of the measures described above, and may impose sanctions in the event of any violation.

c) The three announced decrees will come into effect on the day of their publication in the Official Gazette and will take effect until the end of the quarantine that by resolution or decree is issued by the Ministry of Health.

Executive Decree No. 20

On April 13th, 2020, the Ministry of Health issued a new Executive Decree, which contains the Regulations for the Isolation, Quarantine, Observation or Surveillance, by COVID-19, which aims to issue the guidelines and develop the conditions, time and manner of compliance with quarantine, surveillance or observation of persons subject to such control measures, as determined by the Ministry of Health.

It is established that the regulation is mandatory for all inhabitants of El Salvador and the Ministry of Health (MINSAL) is designated as the entity in charge of coordinating actions for compliance with the measures, with the support of other Ministries or Institutions according to human and material resource needs,

The relevance of this regulation lies in the fact that it regulates the measures of:

1. Isolation: applicable to Covid-19 suspects or confirmed. It shall be carried out in facilities designated by the MINSAL, so that treatment and care are provided according to the patient's clinical condition. The patient's discharge from Covid-19 will be carried out in accordance with the discharge criteria for the clinical care of persons with illness Codiv-19-

• Quarantine: they will be subject to quarantine - People from abroad - Persons who fail to comply with the domicile safeguard without

justification, after being evaluated by medical personnel and being classified as suspects.

- Persons who have had contact with COVID-19, that is, those who present symptoms with a history of physical contact or are less than one meter away from a suspected or confirmed case by COVID-19, within a period of 30 days prior to the date of onset of symptoms, up to 7 days after the cessation of fever.

The quarantine may be:

a. Controlled: it will be for 30 days, when it is fulfilled in facilities designated by the MINSAL.

b. Domiciliary: it will be for those who leave quarantine and will last 15 days, being fulfilled in the residences of the people, under the sanitary measures indicated by the MINSAL.

• Surveillance and Investigation of Possible Cases: Any person who has knowledge of a suspected or confirmed case of COVID-19 is obliged to notify the MINSAL.

In addition, sanctions are established in cases of non-compliance with the provisions of the Regulations, in accordance with the sanctions contained in the Health Code. The MINSAL may be assisted by the National Civil Police in enforcing the measures in a corrective manner.

* Please note that these measures are currently in force and are subject to change at any time, if further decrees are issued by the President and the Legislative Assembly.

Migratory Measures

As of Executive Decree #12 published in the Official Gazette on March 20th, 2020 and in effect since its publication, a general quarantine of 30 days was established and as a consequence the mobility of people throughout Salvadoran territory was restricted, limiting itself to those activities necessary for the attention of citizens during the indicated period. This means that only persons working in companies and the expressly authorized public sector may move to their jobs, and the rest of the population may only move, one representative per household, for the purpose of purchasing food, medicines, fuel and other essential inputs.

With regard to the migratory measures established before decree #12, these are maintained, being:

• The prohibition of the entry of any foreigner from any country in the world.

• Salvadorans, foreigners with legal residence in the country and diplomats, may enter Salvadoran territory, but must go to a 30-day quarantine at a containment center indicated by the government.

• The runways at the "Óscar Arnulfo Romero y Galdámez" International Airport are closed to passenger flights, as of March 16 and until further notice. As a result, the airport in El Salvador is closed for passenger travel, and is only operating to receive air freight, as well as humanitarian aid flights. See note

• The customs are working and the international transport of goods, the export and import of them is authorized and operating normally, always taking the necessary sanitary measures to prevent the spread of the virus COVID-19. Foreign carriers are allowed to enter the country, for which they are subject to a review of symptoms of the disease, and if they do not have them, they may only remain in the national territory for

the delivery and unloading of the goods, and must leave the country once this has been completed.

• Although the land and sea borders remain open, the mobility restrictions of Decree 12 prevent any person in the national territory from moving outside the country through these exit points, as they risk being taken to quarantine in an institutional containment center.

For more information, you can contact us at migraciones@consortiumlegal.com

Labour Measures

• A Guarantee of Protection against Dismissal was established for all workers quarantined by COVID -19. (Legislative Decree 593), during the quarantine and three months thereafter.

• All the terms of judicial and administrative processes have been suspended, including the labor processes until April 30th, (Legislative Decree 593 and 599).

• Workers over 60 years of age, pregnant women and persons with chronic illnesses are ordered to keep shelter in their homes and are covered by the equivalent of their wages during the emergency period (Executive Decree 6).

• The service of restaurants, canteens and food service companies in their premises is suspended, and they may only operate at home. (Executive Decree 9).

• Suspends the labor and commercial activities of the Call Centers and Maquila sector (Executive Decree 11).

• Suspends the opening to the public of shopping centers, only except for medical clinics, supermarkets, pharmacies (Decree 11)

• National Quarantine for the Pandemic is ordered for a period of 30 days, by means of Executive Decree 12, and therefore restricts the rights of assembly and free transit throughout the national territory, which implies that most companies cannot operate, except those expressly considered vital for the country

Other authorizations will be granted for other activities determined to be vital and not included in this decree; but an express resolution must be issued.

Workers of authorized companies must carry a company identification card and authorization from their employer in order to be able to move; companies operating without authorization may be temporarily closed.

*This news is subject to changes by New Legislative and Executive Decrees or reforms of those that have been enacted, some of which are already under discussion; as well as by new measures the President may decree.

Financial Measures

In response to the current worldwide situation regarding COVID19, the Salvadoran Government announced the creation of the "Economic Relief Plan to respond to the emergency of COVID19" (the “Plan”). This Plan includes the creation of economic measures that seek to leverage the crisis faced by individuals and entities, due to the actions issued by the Salvadoran Government to avoid the spread of COVID19 in Salvadoran territory.

These measures are targeted to those individuals or entities that have been directly affected by the emergency, and need to be approved by the Salvadoran Congress, in order for them to be legally binding.

The economic measures that have been included in the Plan include the following: See the measures

• The process for the execution of this Plan is still ongoing and will continue to evolve as time passes. On March 20th, the Salvadoran Congress approved the following proposals:

• In accordance with Decree 601, the Salvadoran Congress approved the suspension of water, telephone, electricity, cable and internet bills for 3 months. The payments of these bills will be diluted in 2 years without generating arrears, interest and without affecting the individual or entity’s credit score.

• Suspension of any process to disconnect water services due to lack of payment of the bills, during the term of the emergency.

• In accordance with Decree 602, on March 21st , the Salvadoran Congress approved certain amendments to the Consumer Protection Law in relation to maximum quantities of goods to be purchased by individuals in supermarkets, establishing maximum prices in order to prevent hoarding and consumers being affected by high prices.

• In accordance with legislative Decree No. 603, the transitional provisions on the tax treatment of donations during this period of national emergency.

• In accordance with Legislative Decree N°604, the Central American Import Tariff has been amended, in order to facilitate the movement of goods.

• Legislative Decree No. 605 created the Law on Facilitating Online Purchases, for the COVID19 emergency period.

Tax Measures The following are the fiscal measures that have been taken to reduce - directly or indirectly - the negative effects of the COVID -19. See publication

Measure Description Deadline Beneficiaries

Deferral of payments

Payment of Income Tax

Extended until May 31st, 2020, without interest or surcharge

Companies dedicated to tourism, whose income tax is equal to or less than USD 25,000.00

Payment of Income Tax

Possibility of access to an installment payment of up to 8 installments, with the first installment due on May 31st, 2020.

Small businesses in general; companies dedicated to telephone, internet, subscription television services and companies in the electricity market

Full income tax advance

Possibility of access to payment in installments of up to 6 installments, with the first installment due on July 31st, 2020.

Companies dedicated to telephony, internet and subscription television services

Internal Tax Exemption

Exemption from the Special Contribution for the Promotion of Tourism, provided as long as it has no tax incentive

Exempt for 3 months Small and medium enterprises dedicated to tourism

Measure Description Deadline Beneficiaries

Customs Exemptions

Exemption of definitive imports made online, from the United States

Exempt during the State of Emergency

Natural Persons

Humanitarian donations made by Free Zones

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Natural Persons

Modification to the Central American Tariff

Zero percent tariff for essential foodstuffs, medicines for respiratory diseases and hygiene products, among others

Exempt during the State of Emergency

Importers of basic necessities

Suspension of deadlines

Administrative and Judicial Deadlines

Suspended for 30 days Users from the Public Administration and the Judiciary

HONDURAS

Government Measures

The President of Honduras in Council of Secretaries of State by Executive Decree PCM-005-2020 dated February 10th , 2020, declared a STATE OF HEALTH EMERGENCY, throughout the national territory, in order to continue and strengthen the actions of surveillance, prevention, control and ensure care to people before the occurrence of coronavirus infection (COVID-19).

Therefore, by Executive Decree PCM-021-2020 dated 15 March 2020 and published in the Official Gazette on 16 March 2020, it is decreed: to restrict at the national level, the constitutional guarantees established in Articles 69, 71, 72, 78, 81, 84, 93, 99, and 103 of the Constitution of the Republic.

SPECIFIC PROHIBITIONS:

• Suspension of work in the public and private sectors during the time of exception.

• Events of all types and numbers of people are prohibited.

• Suspension of the operation of public transport.

• Suspension of religious celebrations in person.

• The operation of businesses including shopping centers is prohibited; and,

• Closure of all air, land and sea borders in the national territory.

See exceptions

Declaration of absolute curfew at national level

The Secretary of State in the Security Dispatches through the National Police in the framework of SINAGER, by means of a Press Release on Friday, April 19, 2020, declares to extend the ABSOLUTE TOUCH AT NATIONAL LEVEL until Sunday, April 26, 2020 until 3:00 pm in accordance with Decree PCM-033-2020. The population is being segmented according to the termination of the digits of their identity card, passport or resident card for foreigners, so that they can get their food, medicine, fuel and supplies at hardware stores by making their arrangements on Monday, Tuesday, Wednesday, Thursday and Friday, from 7:00 a.m. to 5:00 p.m. On Saturdays and Sundays, the circulation of vehicles is forbidden, except for people who have a valid driver's license.

Exception Request

The Secretary of Economic Development has informed the productive and business sectors of the country that the Presidency of the Republic has appointed an Exceptions Committee, which is incorporated by the Secretary of Security, the Secretary of Labor and Social Security, the

Secretary of Investment and the Secretary of State in the Office of Economic Development, in order to receive and analyze requests for exceptions that companies and productive sectors may request from the lockdown measures and guarantee its operation. Therefore, all requests should be sent to the Committee at the following email address: comite.excepciones.emergencia@gmail.com

Amendments to the Electronic Signature Law and Key Provisions to Expedite Electronic Commerce

According to the Law of Aid to the Productive Sector and Workers in the Face of the Effects of the Pandemic Caused by COVID 19 contained in Decree 33-2020, published in Gazette No. 35,217 dated April 3 of this year and in relation to the reforms to articles 7 and 27 of the Law on Electronic Signatures, the following main aspects are included

• Advanced Electronic Signatures, i.e. those certified by an accredited service provider in the country, will be maintained in general application, proving the existence of obligations and giving access to the registration of documents in public registries.

• In order to promote digital transformation, the administration may grant the equivalence of effects to the advanced electronic signature for certain cases to other types of signature or means of identification of persons, among others:

o Hybrid of technologies based on Public Key Infrastructure (PKI) and Biometric Signature or any other equivalent or substitute technology

o Cloud-based electronic signature systems. o Two-factor systems. o Biometric systems including photographic means. o Others that may be developed as technologies advance.

• An amendment to the Regulations of the Law on Electronic Signatures or an agreement issued by State institutions for the procedures under their responsibility, will determine the cases and circumstances in which it will be sufficient to use a reliable means of identification of the above, as an alternative to the advanced electronic signature of general application.

• Electronic signature certificates issued by foreign Certification Authorities or Entities shall produce the same legal effects as a certificate issued by national Certification Authorities, provided that such certificates present a degree of reliability as to the regularity of the details of the certificate, as well as its validity and enforceability, and must be issued by a reliable Certification Authority duly recognized at the international level. For this purpose, a list of entities designated as reliable by the Property Institute may be drawn up.

• The parties may agree to use certain types of electronic signatures or certificates. Such an agreement will be sufficient for the purposes of cross-border recognition, provided that it is valid and effective under the law and no formality is required for recognition.

As for other provisions of Administrative Simplification in the Implementation of Electronic Commerce Mechanisms, they are found:

• Public or private sector entities may designate one or more persons responsible for certifying the corresponding authorizations to ensure the flow of their operations by electronic means. These persons will have the character of authenticators. The designated persons must be communicated to the Property Institute, which will keep a register of them. State entities must consider valid the certifications made by these means and will have the effects indicated in Article 7 of the Law on Electronic Signatures.

• All types of acts, contracts and other legal transactions may be concluded by electronic means provided that it is possible to show conclusively the will of the parties to carry out the legal transaction by that means. The consent of the parties is proven by the exchange of e-mails, videos, voice recordings, exchange of text messages, electronic acceptance of standardized contracts or by sending an electronic self-portrait holding the identity document visibly next to the face of the signatory taken through the corresponding application prior to sending the respective application or form.

• All legal persons under private law and State institutions that are required to hold meetings of their governing and supervisory bodies are authorized to do so by electronic means. This includes the assemblies of commercial companies, cooperatives, trade unions and other not-for-profit legal entities, as well as the other decision-making bodies of these entities that must meet periodically to take administrative decisions.

The minutes in which the actions are recorded, as well as the agreements reached or the result of the votes will be fully valid with only the autograph or electronic signature of the President and the Secretary of the respective body and they will be registrable in the corresponding registers.

• All government entities in compliance with the provisions of Articles 61, 87 and 88 of the Law on Administrative Procedure amended by Decree No. 266-2013, must make all notifications of administrative acts including orders and resolutions through the use of electronic mail. In order to comply with this provision, the general secretaries or officials exercising such function in the institutions must request from the applicants and their legal representatives the e-mail addresses to which the corresponding notifications must be made within one week after the entry into force of this Law. Electronic notification has the same effects as personal notification and must be made to both the legal representative and the beneficiary of the procedure within the time limits established in the Law on Administrative Procedure.

• Authorize the institutions supervised by the National Commission of Banks and Insurance Companies (CNBS) to comply with the transactions they are authorized to carry out with their clients and the rights and obligations derived from these, contained in the Financial System Law by electronic means, being able, among other things, to sign contracts with their clients electronically, also substituting the copies or original documents with

electronic images, in the understanding that the records kept by the banks on the transactions carried out by their clients by electronic means and following the regulations that the National Commission of Banks and Insurance Companies (CNBS) could issue in this regard, will serve as full evidence in court.

Migration Measures

In accordance with the provisions issued by the Government of Honduras, the National Institute of Migration. (INM) reports that:

I. The Ground Migration Control Points, are kept operating for:

a) The entry into the country of Hondurans, residents and diplomats, who are obliged to submit to the biosecurity measures established by the Ministry of Health.

b) Departure from Honduran territory of foreigners, who must present their passport, and / or valid document for their departure and comply with biosecurity measures issued by the Ministry of Health, in addition to ensuring that they have permission to enter and / or transit of the country to which they intend to enter or transit.

c) The Migratory Registry of entrance and exit of Carriers of load only (they are not allowed companions), that will have to be put under the dispositions of the General Direction of Customs and the Secretary of Health.

The opening hours at land-based migratory points are as follows:

From Monday to Sunday from 6:00am to 6:00pm for the mobility of the populations authorized here.

From Monday to Sunday, 24 hours of transit for carriers except for the borders of Guatemala, which is from 6:00am to 6:00pm.

II. The Maritime Migratory Control points are kept operating only for cargo vessels. The crew is not authorized to disembark.

III. The Air Migration Control points are kept closed for commercial flights.

For the exit of foreigners by this way, national or foreign companies established or not in the country, as well as individuals, can request authorization of exit in private flights, before the Secretary of Tourism or Secretary of Foreign Affairs and International Cooperation, it will have to be requested with 24 hours of anticipation, sending it to the email address SeturHonduras2020@gmail.com attaching all the pertinent documentation.

IV. The mobility of persons may be restricted when the competent authorities determine such a measure, without incurring liability.

V. No foreign person may enter the National Territory, while the emergency lasts. VI. Every person who undergoes these procedures for mobility, must wear a mask and use

gel, keep 1-meter distance between citizens during the process of entry or exit.

The National Institute of Migration (INM), committed to the safety and health of travelers, requests respect for and compliance with all preventive measures issued by the Government of the Republic.

For further information and inquiries, please contact consultasentradasysalidas@inm.gob.hn

VII. As of March 29, 2020, all types of flights will be temporarily available for Hondurans wishing to return to the country through the Tocontín International Airport in Tegucigalpa and Ramon Villeda Morales Airport in San Pedro Sula. This measure is subject to suspension according to the evaluation of the global and national spread of COVID-19.

VIII. That the Honduran citizen who enters the national territory through any airport or any border must submit to the protocols of epidemiological surveillance and home self-isolation or any establishment that the State assigns for this purpose during 14 days determined by the Ministry of Health.

IX. To guarantee compliance with the Health protocols, the Honduran citizen who enters must sign an Affidavit in which he commits to strictly comply with the self-isolation measure.

X. This same Affidavit will obligate the Honduran who enters and does not comply with the self-isolation to cover the medical expenses incurred by the government and the persons with whom he has had contact upon his return and are infected in case he is diagnosed as positive by Covid-19. This statement is for personal use only, except for parents, guardians or representatives who will sign for the minors.

XI. Those who fail to comply with these measures are subject to liability under Article 4(1), second paragraph, of the Sinager Act, which states: "Anyone who, by action or omission, endangers, threatens or causes damage to persons and/or their property by constructing, authorizing or permitting risk scenarios, whether in a culpable or negligent manner, shall be subject to the sanctions and penalties established in the laws of the Republic and shall compensate the person or persons affected by the damage caused.

XII. The entry of foreigners to the country is temporarily prohibited, except for the diplomatic corps and residents, who must submit to the same measures indicated here.

XIII. Every person who submits to these procedures for their mobilization is obliged to wear a mask during their trip.

XIV. The above is without prejudice to the processes, information and other requirements required by the authorities operating at the points of entry to the country.

XV. Sinager reiterates to the Honduran population its commitment to ensure the protection of the health of each citizen by implementing virus containment measures to prevent the spread of the virus.

In view of the international contingency of COVID-19, and with the aim of complying with the communiqué issued by the National Risk Management System (SINAGER), the following observations are to be implemented as measures for commercial flights as of Sunday, 29 March 2020:

1. Provide comprehensive biosecurity equipment and supplies to migration inspectors.

2. Provide migration counters with anti-material gel for use by staff and travellers.

3. That Hondurans who return to the country on flights to be allowed must perform the mandatory Preliminary Immigration Check 24 hours in advance of their trip, which can be found on the web portal https://prechectueo.inm.gob.hn/

4. Receive a maximum of 2 to 3 flights per day, with intervals of at least 2 hours between each flight, and with a maximum of 120 passengers per flight.

5. The airlines must deliver the forms provided by Health and the Affidavit during the flight and prior to arrival. Both health and immigration authorities require that the content of the Affidavit must state that it is mandatory to provide the address with references and telephone number, fixed and / or cell phone true and reliable.

6. Passenger disembarkation is suggested to be done in segments of 20 people, in average 10 minutes each group, respecting the distance between each one of one (1) meter minimum in the rows.

7. The airlines must ensure the handling of baggage quickly to avoid the accumulation of passengers in the luggage area.

8. To be reinforced by more staff from the Airport Security Department (DSA) at each airport.

9. That after the attention of each flight the corresponding areas be disinfected and fumigated.

10.That parameters are established for the mobilization of passengers from airports to where the health authority indicates, without allowing the reception of passengers by family members.

Labour Measures

The Secretariat of State for Labour and Social Security (STSS), in the framework of the National Health Emergency declared by Executive Decree PCM021-2020 and in order to guarantee the maintenance of jobs and the productive sustainability of the companies; by means of a Communiqué dated 26 March 2020 it has proceeded to inform workers and employers in the private sector, of the following:

• Employers and workers in the private sector are authorized, by agreement between the parties, to agree that the holidays indicated in article 339 of the Labour Code be considered as granted and enjoyed by the workers during the period of validity of the State of National Health Emergency due to the spread of Covid-19 (Coronavirus). - It is understood that the days indicated in the aforementioned article will be considered as an ordinary working day once the declaration of the National Health Emergency has been suspended and the provisions of article 340 of the Labor Code regarding the payment of double wages will not be applicable.

Holidays to be granted: ten (10) days in the year 2020 (excluding January 1, 2020 which has already been granted) Likewise, the holidays indicated in the Code will be worked normally without applying the double payment.

"Article 339: Employers shall pay the following holidays or national holidays: January 1, April 14, May 1, September 15, October 3, October 12, October 21 (Morazan holiday) and December 25, even if they fall on a Sunday; Thursday, Friday and Saturday of the Holy Week.

When, for reasons of any holiday not determined in the preceding paragraph, the employer suspends work, he is obliged to pay the salary for that day as if it had been performed.

The payment of holidays or national holidays, when they are not worked, must be made with the average daily ordinary and extraordinary wages earned by the worker during the week immediately preceding the holiday or national holiday in question.

If the worker has not worked during the week immediately preceding the holiday or national holiday, the wage corresponding to a normal working day shall be taken as the basis.

It is understood that when the wage is stipulated for a fortnight or a month it implicitly includes the payment of holidays or national public holidays that are not worked".

"Article 340.- If, by virtue of an agreement, work is performed on days of rest or on public holidays or national holidays, it shall be paid double the salary corresponding to the ordinary working day in proportion to the time worked, without prejudice to the worker's right to any other day of rest in the week in accordance with article 338.

• Employers may grant a vacation account for the days that, by virtue of the State of National Health Emergency due to the propagation of Covid-19 (Coronavirus), workers do not report to work during their regular workday. An exception to the foregoing article is the obligation of the employer to inform the worker ten (10) days in advance of his vacation.

• For the purposes of applying numbers 1 and 2 of this Communication, agreements must be made in writing, which must be sent in digital form to the Secretary of State for Labor and Social Security at the e-mail address secretariageneralstss@gmail.com so that they can be validated later by the Labor Authority.

Also, in accordance with the Law on Aid to the Productive Sector and Workers in the Face of the Effects of the Pandemic Caused by COVID 19 contained in Decree 33-2020, published in Gazette No. 35,217 on April 3rd of this year, the following measures were issued:

• Mechanisms are created to guarantee employment stability, such as the granting of a solidarity contribution, which ensures the survival of workers and which, for the purposes of this Act, does not constitute a salary. This Law is aimed at maintaining jobs and the sustainability of companies, in order to mitigate any measures that lead to the definitive termination of employment contracts and the closure of companies during the national health emergency.

• Workers who are subject to contract suspension due to force majeure arising from the National Health Emergency may receive a temporary solidarity contribution, which may finance as follows:

• For workers who are affiliated to the Private Contribution Regime (RAP), with the contributions made for this purpose by the State, the Private Sector and the Private Contribution Regime (RAP).

• For workers who work in companies under the Free Zone Regime (Maquila), with the contributions made by the State and the Private Sector for this purpose.

• In all cases the amount, term and form of payment will be determined by the parties financing the temporary solidarity contribution.

• The workers will maintain the benefit of access to health through the Honduran Institute of Social Security (IHSS) even when the contributions are suspended due to the suspension of work or the period of the National Emergency.

• Workers and employers may agree by agreement on actions that will bring greater benefits. It is understood that such agreements must be immediately notified to the Ministry of Labor and Social Security (STSS) through the electronic means created for such purpose, in compliance with the provisions of Article 379 of the Labor Code.

• The Private Contribution Regime (RAP) is authorized to cease, for a period of up to three (3) months as from March 2020, the collection of mandatory employee-employer contributions and contributions corresponding to the individual capitalization accounts derived from the Social Security Insurance Regime and the Labor Coverage Insurance Regime, in accordance with the attribution granted by the Social Protection System Framework Law

• The Private Contribution Regime (RAP) will participate as a contributor as indicated in this Law and consequently will grant its affiliates an advance of the values they have in their favor in the Individual Capitalization Account derived from the Social Security Insurance Regime and the Labor Coverage Insurance Regime, as well as any other individual account that is credited in the name of the affiliate and that is being administered by the RAP; taking into consideration the balance that each affiliate has in his individual account. The advance established in the present article will be divided in three (3) successive monthly payments of equal value, up to an amount of Nine Thousand Lempiras (L.9,000.00) to be disbursed in three (3) months. Said advance shall be granted as long as the company affected by the emergency asserts before the RAP that it has been affected in the development or normal course of its operations and/or economic activity, and also asserts compliance with the provisions of Article 28 of this Law

On April 12, 2020, the Ministry of Labor issued a General Manual on Biosafety in Relation to the COVID-19 Pandemic for Workplaces, which can be found by following this link: http://consortiumlegal.com/documentos/COVID-19/documentos/HN/Manual_General_de_Bioseguridad_por_motivo_de_Pandemia_CODVID_FINAL_FINAL%20con%20la%20UE.pdf

Financial Measures

a) On March 16, 2020, by means of Circular CNBS 004/2020, and for its related purposes, by Superior Instructions, the Regulator INFORMS that by reason of Communiqués of the Secretariat of State in the Offices of Government, Justice, and Decentralization, dated 15 and 16 of March of 2020, it is communicated:

"To all Central and Decentralized Government Departments and the General Population, the following: In order to safeguard the health and life of the population, within the framework of this national emergency as a prevention from the COVID-19, daily work tasks are suspended from Monday 16 to Friday 20 March 2020.

The administrative personnel of the Administrative Management and Sub-Management of Human Resources of each Institution; likewise, the personnel of the Secretariat of State in the Office of Finance, the General Directorate of Civil Service and others that are related for the payment of employee salaries to be made, who shall only present themselves to their work on Monday, March sixteenth (16) of the present year in their normal schedule. "...”The above mentioned days are declared UNUSUAL for the effects, terms, actions and legal terms that the Law establishes, which are suspended and the legal terms will start to run again beginning on the first working day...", respectively.

In compliance with the above-mentioned communications, the offices of the National Commission of Banks and Insurance Companies (CNBS) will be closed from Monday 16th to Friday 20th March 2020 inclusive. The above-mentioned days for pending matters are therefore DISABLED, and the administrative deadlines for such matters are suspended from Monday, March 16th to Friday, March 20th, 2020; Notwithstanding the foregoing, in application of the referred Circular, the corresponding personnel shall be assigned functions through teleworking that they may perform at home, related to Matters that may arise respective to Commission procedures and that are considered of an urgent nature, and only Resolutions shall be notified or communicated via e-mail when applicable, related to the Secretariat of State in the Office of Finance (SEFIN), on Requests for the Assignment of ISIN Codes, for the issuance of "Government of Honduras Bonds

(GDH)", for which the days and hours are set for the sole effect of their notification or communication, and once this has been done, the administrative deadlines related to the Appeals that may be filed against them are suspended.

b) By means of Resolution DAL No.174/21-03-2020 of the CNBS, included in CNBS Circular No. 005/2020, it resolves to the Supervised Institutions, Superintendence of Banks and other Financial Institutions, Superintendence of Insurance, Superintendence of Pensions and Securities, Studies Management, Risk Management, the following:

• Enable the days and hours of non-working hours during the period of emergency decreed by the Government of the Republic, which includes the period of absolute rest, throughout the national territory, within the framework of the national health emergency and the red alert of the Corona virus, COVID-19, for the purposes of administrative procedure, related to the issuance of resolutions by the Commission containing prudential provisions to mitigate the economic repercussions at the level of the supervised institutions, derived from the health crisis in the country by the COVID-19, safeguarding the public interest of depositors, through the maintenance of stability of the national financial system, to adopt the necessary measures to maintain the stability of the national financial system, in a timely manner, thus preventing a deterioration in the solvency of the supervised institutions, as well as the Communication and Notification, when applicable, of the aforementioned Resolutions that are issued.

• Communicate this Resolution to the supervised institutions, the Superintendency of Banks and Other Financial Institutions, the Superintendency of Insurance, the Superintendency of Pensions and Securities, the Studies Department and the Risk Management Department, as technical areas of the National Commission of Banks and Insurance, for the relevant legal purposes.

c) Resolution GES No. 175/21-03-2020 of the CNBS, included in CNBS Circular Letter No. 006/2020, establishes temporary benefits for all natural or legal persons whose cash flows have been reduced as a result of the measures implemented by the Government of the Republic to prevent the spread of COVID-19, regardless of the risk category of their loans, and lays down the following conditions:

PERIOD OF GRACE

• Banks may grant grace periods to debtors, whether natural or legal persons, who are affected by the reduction of their cash flows.

• The grace period may not exceed June 30, 2020.

• The grace period may be applied at the request of the debtors or on the initiative of the financial institution.

• The grace period may be granted regardless of the risk category in which the debtor is classified.

AFFECTED

• The following are considered to be affected: the service sector, tourism, transport, hotels, motels and similar, the construction of hotels and similar, restaurants, coffee and similar, land, air and sea transport, the agricultural sector, maquila and micro and small enterprises, and other sectors that may be affected.

• The grace period may be applied to individuals with consumer and housing loans who justify not having received sufficient resources from their salary or other source of income from their economic activity to pay their obligations.

• These provisions apply to all credit operations.

REFINANCING AND READJUSTMENTS

• At the end of the grace period, debtors may formalize the refinancing or readjustment of their loans. The deadline for formalization will be September 30, 2020.

• Financial Institutions must establish differentiated and expeditious procedures for the reception, analysis, evaluation and documentation of requests for grace periods, refinancing or readjustment operations presented by affected debtors.

ACCRUED INTEREST AND CHARGES

• Current interest accrued and not collected at the date of the refinancing or readjustment may be capitalized.

• Debtors are not allowed to be charged for these relief operations.

RISK CATEGORY

• The grace period may be granted regardless of the risk category in which the debtor is classified.

• Credits subject to this relief will retain, until October 2020, the risk category they held as of February 29, 2020.

• After October 2020, loans must be evaluated and classified in the category according to the criteria established in the current regulation in accordance with payment behavior.

Any additional questions regarding the application of the Temporary Relief Mechanisms can be sent to the following e-mail: aliviocovid19@cnbs.gob.hn

d) To the Supervised Institutions, through Resolution DAL No. 176/23-03-2020 of the CNBS, included in CNBS Circular Letter No. 007/2020, it is resolved:

• To suspend all deadlines, legal or administrative terms granted to the Supervised Institutions in all matters or files in process at the Commission and that were communicated or began to run prior to Monday, March 16, 2020, the date on which the Government of the Republic decreed a STATE OF NATIONAL HEALTH EMERGENCY, Red Alert and Absolute Curfew, in response to the spread of COVID-19. Consequently, all the days after the above-mentioned date are unusable until the emergency is over.

• To communicate to the Supervised Institutions, that without prejudice to the provisions of paragraph 1) of this Resolution, the terms and deadlines established by the Commission are not suspended, for the submission of periodic reports, whether daily, weekly or monthly, regarding their Financial Statements, Position of Legal Reserve and Mandatory Investments, Credit Information Center and other figures and data that may be necessary to evaluate the behavior of the temporary or urgent measures issued by the Commission, to face the NATIONAL HEALTH EMERGENCY. Consequently, they will be working every day and hour to send such Reports, Statements or any other information required by the Commission.

• Likewise, for the purposes of the Commission and for the Supervised Institutions, they shall be working days and hours, from Monday, March 16th , two thousand and twenty (2020) onwards, only for the purpose of communicating, adopting and ensuring the adoption of all the Resolutions related to temporary or urgent measures issued by the National Commission of Banks and Insurance Companies to deal with the economic effects of COVID-19 on the Supervised Institutions.

e) In relation to Insurance Institutions, through Resolution SSE No. 177/26-03-2020 of the CNBS, included in CNBS Circular No.008/2020, the following temporary relief mechanisms were approved to mitigate the economic impact of the health crisis

GRACE PERIOD

• Insurance Institutions may grant a grace period for the payment of insurance premiums of policyholders and/or insured persons, which shall not exceed June 30, 2020.

• Insurance Institutions shall keep active the coverage of their policies and may require payment of the first due, in case of a claim or event.

• During the grace period, the freezing of arrears of premium installments shall be allowed for the purpose of constituting the Pending Premium Reserve.

• To prohibit the application of administrative or other additional charges to policyholders and/or insured who request the grace period for the payment of their respective insurance premiums.

RISK ASSESSMENT

• With the purpose of quantifying the accident rate derived from the health emergency, the Insurance Institutions must carry out risk and impact analyses that include the detail of the claims received in the Life, Health, Hospitalization, Damages, Unemployment and other applicable branches related to the emergency, which must be available for review by the Superintendence at the required time.

• Each Insurance Institution must determine the requirements for the application of the mechanisms established in the referred Resolution and have the evidence that the policyholders and/or insured have actually been affected by the measures taken in the framework of the health emergency.

f) In relation to the Institutions of the Financial System and Private Organizations of Financial Development, through GES RESOLUTION No.183/06-04-2020 of the CNBS, included in CNBS Circular Letter No.009/2020, the following is resolved

• To approve the following temporary measures complementary to those set forth in Resolution GES No.175/21-03-2020, which allow the supervised institutions, considered as such for these purposes the Institutions of the Financial System and the Private Financial Development Organizations, to address the economic impact of the measures adopted in the country, to prevent the Coronavirus pandemic known as COVID-19:

A) To extend until October 31, 2020, the transaction limits applicable to basic savings deposit accounts, which will be applicable regardless of the channel or means provided for the use of the resources deposited in such accounts, including a debit card, electronic purse or other similar service.

The new transaction limits applicable temporarily to basic savings deposit accounts shall be as follows:

- The maximum monthly balance shall be Fifteen Thousand Lempiras (L 15,000.00).

- The maximum limit of transactional movements of deposits, withdrawals, payments and others, accumulated monthly will be Thirty Thousand Lempiras (L30,000.00), resulting from the sum of credits minus the sum of debits, which will be reflected in the account at the end of each month.

B) Require Financial System Institutions and Private Financial Development Organizations, which have incorporated basic savings deposit accounts within their financial products and services portfolio, to design and implement new channels through which financial users may make use of the resources deposited in this type of accounts, either through debit cards, electronic purses or other similar services, in order to reduce the influx of financial users to the offices and agencies of the institutions, promoting the use of ATMs and correspondent agents, thus supporting the measures adopted by the Government of the Republic, aimed at a lesser mobilization of the population during the period of the National Health Emergency declared in the country by the Coronavirus called COVID-19.

C) Recommend to the Financial System Institutions and Private Financial Development Organizations to review their structure of charges for commissions, applicable for the use of alternative channels, among them electronic transfers and correspondent agents, in order to motivate the use of these channels by financial users, due to mobility restrictions established by the Government of the Republic, derived from the National Health Emergency declared in the country by the Coronavirus called COVID-19.

g) Ratify the rest of the content of Resolution GE No.147/15-02-2015, issued by the National Commission of Banks and Insurance Companies, which contains the "Standards for Opening, Managing and Closing Basic Savings Deposit Accounts in Supervised Institutions.

h) Instruct the Superintendency of Banks and Other Financial Institutions, as the technical body of the National Commission of Banks and Insurance, to carry out such monitoring and control activities as may be necessary to verify adequate compliance with the provisions of this Resolution by institutions of the financial system and private financial development organizations.

i) Communicate this Resolution to the institutions of the financial system and private financial development organizations, for the relevant legal purposes.

I. Authorization national banking system

By means of a communiqué issued by the Secretariat of Security on March 24, 2020, the banks, cooperatives and financial institutions were authorized, in coordination with the Central Bank of Honduras (BCH), to serve the public during the following hours:

• Monday, Wednesday and Friday from 9:00 am to 4:00 pm in all its agencies and branches, with the exception of shopping malls (Malls).

• The elderly, pregnant women and people with special abilities, accompanied by a person will be attended exclusively on Thursday, March 26, 2020 at the same time.

• Only one person per vehicle may be transported and the agencies of financial institutions will only allow the entry of three customers per cashier and must provide hand gel, before the entry of customers, undergo temperature control and keep a distance of one and a half meters between customers.

• Children under 18 years of age will not be allowed to enter.

• The employees of the Banking Institutions will be able to transit counting their respective identification only on Mondays, Wednesdays and Fridays from 9:00 am to 4:00 pm.

• All financial institutions must provide all their employees with private transportation from home to work and vice versa, as well as ensure cleaning, security, courier and value transport services.

• Verification operations will be carried out by the authorities and in the event that crowds of people are identified that put their health and lives at risk, these measures will be cancelled immediately.

Verification operations by the authorities shall be carried out and if agglomerations of people at risk to health and life are identified, these measures shall be cancelled immediately. These hours were extended until 5:00 p.m. for the bank by means of a communiqué issued by the Secretariat of Security on April 4, 2020.

II. Monetary program 2020- 2021 and monetary policy measures to mitigate the economic impact of COVID-19

Through the Press Release No.13/2020 of March 19, 2020, the BCH approves the monetary program 2020- 2021 and monetary policy measures to mitigate the economic impact of the COVID-19, therefore and in summary, the measures adopted by the BCH Board are the following

Reduce the MPR by 75 bp to 4.50%; also, adjust in the same proportion the cut-off rates of the different terms of the BCH values offered in the Structural Auctions.

2. Reduce the interest rate applicable to the Permanent Credit Facilities (CPF) from 6.25% to 5.50% (MPR + 1.00 pp)

3. Continue offering the financial system Repo Operations with the BCH, extending its maximum term from 14 to 28 days and reducing its interest rate from 7.00% to 6.25% (FPC + 0.75 pp).

4. Establish the interest rate applicable to the Permanent Investment Facilities (PIF), in TPM - 4.50 pp, that is 0%.

5. Temporarily suspend the daily auctions of Bills of Exchange exclusively addressed to financial institutions, which allow banks to have liquidity to meet the needs of their customers in these moments of high demand by the population; such liquidity is around L10.6 billion

6. Monitor the evolution of the main macroeconomic variables and adopt adequate and timely policy measures to maintain low and stable inflation.

The following table describes the main macroeconomic results for 2020 and 2021:

The detailed data of the 2020-2021 monetary program can be found at the following link.

III. Additional monetary policy measures

In the ordinary session No.173/31-03-2020 the Open Market Operations Committee (COMA) of the BCH analyzed the most recent economic conditions at the internal and external level.

In the international markets of relevant raw materials for the Honduran national economy, in the first quarter of the year 2020, a drop in the average international price of oil of 16.4% was observed, in relation to the period of 2019, as a result of the decrease in the world demand for fuel due to the health crisis caused by the COVID-19 pandemic. In the same way, an increase in the price of coffee of 10.8% has been noted, due to the interruption of supply in the main exporting countries of South America.

In January 2020 the Honduran economy showed signs of recovery, reflecting a variation of 3.8%, measured through the original series of the Monthly Index of Economic Activity (IMAE).

The forecasts of the BCH indicate a contraction as of the second quarter of 2020, which would be pointing to an annual fall in terms of the Gross Domestic Product (GDP), considering the effect of external demand by the lower economic growth of the U.S. and the shocks of aggregate domestic demand resulting from the direct impact of quarantines and total or partial cessation of economic activities.

In line with these forecasts, a deceleration of inflation is expected during 2020, in which the effect of lower aggregate demand pressures and a fall in fuel prices prevails over the temporary increase in food prices.

Before a domestic and foreign scenario of greater uncertainty, and regarding the framework of the 2020-2021 Monetary Program, in which it was established as a measure:

"Permanently monitor the impacts of Covid-19 on the national economy and adopt, in a timely manner, additional measures that allow for reducing the impact on the Honduran economy".

The Board of Directors of the BCH approved a set of flexible monetary policy measures with financial conditions, facilitating the operation of the country's financial and payments system by providing liquidity to meet the needs of economic agents at this time of high demand, and in turn promote access to credit to different economic sectors, which help mitigate the impact of the pandemic.

In summary, according to the recommendations of the Open Market Operations Committee, the measures adopted by the BCH Board of Directors are the following:

- Reduce the requirement for mandatory investments in local currency, establishing it at 0% as of the fourteenth day starting April 9, 2020, complemented with the early redemption of the 2-year BCH Bonds that are part of the computation of mandatory investments, allowing with such measures to provide liquidity to the financial system for approximately L6.5 billion.

- Extend the temporary suspension of the Daily Auction of BCH Bills addressed to institutions of the financial system from 30 to 75 additional days, that is, until June 30, 2020.

- Suspension during the second quarter of the year of the BCH Structural Securities Auctions, which would imply an additional availability of resources for the financial system of approximately L.5 billion.

- Reduce interest rates of the BCH credit windows to the Financial System, as of April 7, 2019, as well:

o The margin applied to the interest rate of the Permanent Credit Facilities (CPF) is reduced from TPM, with which the applicable rate has been reduced since the beginning of February 2020 from 6.25% to 5.00%.

o The rate applicable to Direct Repurchase Agreements of the financial system with the BCH, from FPC, is reduced, with which the repurchase agreement rate has been reduced since the beginning of February 2020 from 7.00% to 5.50%.

With respect to the TPM, after reductions that add up to 100 basic points in the last months, it remains at 4.50%, with the commitment to continue rigorously monitoring the evolution of inflation in order to stimulate it:

- Credit,

- Encourage internal demand and confidence among economic agents,

- Preserving the role of the monetary policy rate as a signaling variable for the money market interest rates.

Additional Monetary Policy Measures

In the ordinary session No.173/31-03-2020 the Open Market Operations Commission (COMA) of the Central Bank of Honduras (BCH) analyzed the most recent economic conditions at the internal and external level.

In the international markets of relevant raw materials for the Honduran national economy, in the first quarter of the year 2020, a fall in the average international price of oil of 16.4% was observed, with respect to the period of 2019, due to the decrease in the world demand for fuel due to the health crisis caused by the COVID-19 pandemic. In the same way, an increase in the price of coffee of 10.8% has been noted, due to the interruption of supply in the main exporting countries of South America.

In January 2020 the Honduran economy showed signs of recovery, reflecting a variation of 3.8%, measured through the original series of the Monthly Index of Economic Activity (IMAE).

The BCH forecasts indicate a contraction as of the second quarter of 2020, which would be pointing to an annual fall in terms of the Gross Domestic Product (GDP), considering the effect of external demand due to lower economic growth in the USA and the shocks to aggregate domestic demand derived from the direct impact of quarantines and the total or partial paralysis of economic activities. In line with those forecasts, a deceleration of inflation is expected during 2020, in which the effect of lesser aggregate demand pressures and fall in the prices of fuels over the temporary increase in the prices of food.

Before a domestic and foreign scenario of greater uncertainty, and regarding the framework of the 2020-2021 Monetary Program, in which it was established as a measure:

"Permanently monitor the impacts of Covid-19 on the national economy and adopt in a timely manner additional measures that will reduce the impact on the Honduran economy".

The Board of Directors of the BCH approved a set of flexible monetary policy measures with financial conditions, facilitating the operation of the country's financial and payments system by providing liquidity to meet the needs of economic agents at this time of high demand, and in turn promoting access to credit for different economic sectors, which will help mitigate the impact of the pandemic.

In summary, according to the recommendations of the Open Market Operations Committee, the measures adopted by the BCH Board of Directors are the following:

• Reduce the requirement for mandatory investments in local currency, establishing it at 0% as of the fourteenth day starting April 9, 2020, complemented with the early redemption of the 2-year BCH Bonds that are part of the computation of mandatory investments, allowing with such measures to provide liquidity to the financial system for approximately L6.5 billion.

• Extend the temporary suspension of the Daily Auction of BCH Bills addressed to institutions of the financial system from 30 to 75 additional days, that is, until June 30, 2020.

• Suspension during the second quarter of the year of the BCH Structural Securities Auctions, which would imply an additional availability of resources for the financial system of approximately L.5 billion.

• Reduce the interest rates of the credit windows of the BCH to the Financial System, from April 7, 2019, as well:

o The margin applied to the interest rate of the Permanent Credit Facilities (CPF) is reduced from TPM, where the applicable rate has been reduced since the beginning of February 2020 from 6.25% to 5.00%.

o The rate applicable to Direct Repurchase Agreements of the financial system with the BCH, from FPC, is reduced, where the repurchase agreement rate has been reduced since the beginning of February 2020 from 7.00% to 5.50%.

With respect to the TPM, after reductions that add up to 100 basic points in the last months, it remains at 4.50%, with the commitment to continue rigorously monitoring the evolution of inflation in order to stimulate:

• The credit,

• Encourage internal demand and confidence among economic agents,

• Preserve the role of the monetary policy rate as a signaling variable for the money market interest rates.

Tax Measures First:

• Natural and legal persons are not subject to the payment of the Sales Tax and "Production and Consumption Tax" in the local purchase and imports of raw materials, inputs, packaging material and containers necessary for the production of sanitizing products and medicines to attend the sanitary emergency and combat the effects of the probable risk of infection by CORONAVIRUS.

• In order to make the above-described non-subsidization effective, natural and legal persons must only prove that they are duly authorized by the Health Regulation Agency (ARSA)

• Exonerate from 15% Sales Tax, the purchase of masks and hand gel made by the population in the entire market trade.

• The established non-taxation will last until December 31, 2020 Second:

• State institutions are not subject to payment of Sales Tax and Production and Consumption Tax on local purchases and imports of sanitizing products and medicines to attend to the health emergency and combat the effects of the Coronavirus until December 31, 2020

Third:

• The State and non-profit Civil Associations are exempted from presenting tax solvency, in the processing of all customs exemptions and exoneration of local purchases, as well as donations for humanitarian aid in the area of health, education and food derived from the

emergency established by SINAGER for the prevention of dengue and the fight against CORONAVIRUS.

Fourth:

• The Secretariat of Finance in coordination with the Secretariat of Economic Development and the Honduran Customs Administration, within 5 working days from the entry into force of this Decree, shall issue the customs tax instructions that lead to the implementation of the provisions.

Fifth:

• Order the Secretaries of State and other Decentralized Government entities, as appropriate, to facilitate administrative procedures in the local purchase and imports of raw materials, packaging material, containers, necessary for the production of sanitizing products to meet the health emergency.

Sixth:

• The Ministry of Health and COPECO are exempted from the payment of all kinds of taxes on local purchases and imports of goods needed to meet the health emergency.

Seventh:

• The Free Zones are authorized to sell 100%, free of taxes, of their production within the national territory, the specific medical equipment for the treatment of the pandemic, as long as they are necessary to attend the sanitary emergency within the framework of this Legislative Decree

Legislative Decree 29-2020 enters into force with its publication in the Gazette. As of March 30, 2020, the following complementary measures have been taken

1) To postpone until June 30, 2020, the obligations of declaration and payment (without fines and interest) of Income Tax, Solidarity Contribution and Net Assets, Contribution of the Social Sector of the Economy, Rents, Surplus of Operations of the Educational Sector and the Social Contribution of the Cooperative Sector for the fiscal period 2019 for Small and Medium Tax Obligated Persons. In the case of horizontal property rentals, these are exempted from the previous extension, and the respective ID card must be paid on April 30th, 2020.

2) In relation to the previous paragraph, Small and Medium Tax Obligors who file and pay at April 30, 2020 may enjoy a discount of 8.5% of the tax payable.

3) The 3 installments of payments on account corresponding to fiscal year 2020 must be calculated on 75% of the amount of the tax for fiscal year 2019 (not on 100%) and their payment dates are thus postponed:

a) First installment, until August 30, 2020 b) Second installment, until 30 October 2020 c) Third installment, until 31 December 2020

4) To postpone until July 31st, 2020 the filing of the Annual Informative Affidavit on Transfer Pricing.

5) Declaration of non-working calendar days and months for the period of time in which the COVID-19 Crisis occurs.

6) Authorize, for the period of the state of emergency, the Printing Authorization Key (CAI), to all the taxpayers who have it blocked or suspended to generate fiscal documents.

7) To allow the use of tax documents whose issue deadline expires during the period the state of emergency is in effect.

8) For the Tax Obligated Persons that during the rest of the year (March to December 2020) keep their employee payrolls respecting the payment of salaries, rights and others, an additional 10% will be recognized as a deductible expense for the fiscal period of 2020. This benefit will be lost to the extent that the employer cancels or suspends jobs.

For the ISV

9) In the case of taxpayers who do not operate within the months decreed as a state of emergency, they are granted an extension of the deadlines for filing and paying the Income Tax Return.

10) For those taxable persons who are operating with or without a safe-conduct, they must present and pay their obligations within the time periods established by law.

Also, in accordance with the Law on Aid to the Productive Sector and Workers in the Face of the Effects of the Pandemic Caused by COVID 19 contained in Decree 33-2020, published in the Official Gazette No. 35,217 on April 3 of this year, the following measures were issued:

1) To grant an extension to the taxpayers categorized as small and medium taxpayers and to individuals and independent professionals in the obligation to file and pay (without fines and interest) the following returns:

• Obligation to declare and pay income tax (ISR) Joint and several contribution and net assets

• Contribution of the Social Sector of the Economy

• Specific Single Income Tax on the Rent or Lease of Housing or Apartment Buildings

• Special Contribution on Surplus Funds obtained by Private Universities, Schools and Institutes of Preschool, Primary and Secondary Education

• Social Contribution of the Cooperative Sector All corresponding to the 2019 fiscal period, of which both their formal and material obligation must be fulfilled by June 30, 2020. Excepted from the extension to the Specific Single Income Tax on the Lease or Rental of Homes or Apartment Buildings established in the previous paragraph, are the revenues from rents derived from horizontal property, for which, these must be complied with no later than the thirtieth (30th) of April of the year 2020.

2) The taxpayers categorized as small and medium taxpayers may enjoy a discount of 8.5% on the Income Tax payable for the 2019 fiscal period, if they file the return and pay it by April thirty (30), 2020.

3) The installments of the Income Tax Advance Payments corresponding to the fiscal period 2020, must be calculated on seventy-five percent (75%) of the amount of the Income Tax determined in the fiscal period 2019, and the payment dates of the first three installments are extended as follows

- First installment, until August 31, 2020 - Second instalment, until 31 October 2020 - Third instalment, until 31 December 2020

4) Extend the deadline for filing the Annual Transfer Pricing Information Affidavit for fiscal year 2019, which must be filed no later than July 31, 2020.

5) All calendar days are declared as non-working days for the period in which the emergency declaration originated by the COVID-19 expires, except for this provision and its effects, the days or periods necessary only to comply with the payment and presentation obligations of the returns due on April 30th (Income for large taxpayers and those who wish to take advantage of the discount), June 30th (Income for small and medium taxpayers) payments on account and July 31st 2020 (Transfer Pricing Information Statement).

6) Tax payers who keep all their employees within the term started from the declaration of the state of emergency arising from COVID-19 until December 2020, respecting the payment of salaries and labor rights, and who have not made any suspension or termination of employment contracts, shall be granted an additional special deduction from their gross income equivalent to 10% calculated on the payment of salaries and wages made in the months during which the state of emergency was decreed, which may be accounted for as an additional deductible expense for income tax purposes in the 2020 fiscal period. This benefit will be lost in cases where the employer terminates or suspends employment contracts.

7) The deadlines for the presentation of the declarations and the payment of the Sales Tax corresponding to the months affected by the emergency decreed by the COVID-19, are extended to all the taxpayers who have not had operations within the same period of the aforementioned emergency, which must be presented at the latest within ten (10) working days following the end of the state of emergency. Those taxable persons who have operations are exempt from the above, so that the obligation to declare and pay sales tax remains according to the applicable legislation.

Customs measures The purpose of the Plan and Customs Measures Adopted for the Management of Health Crises before the Covid-19 is to guarantee and sustain the fluidity of the commercial movement to continue generating the necessary financial resources and the supply chain, in addition to avoiding shortages in order to safeguard the population's health. The measures are as follows: I. Preventive Measures to Maintain Customs Revenue

Oriented to trade facilitation in inputs and outputs that are necessary to mitigate food emergency and shortages. II. Places, Working Hours and Personal Measures to be Complied

1) The Honduran Customs Administration shall be responsible for the transfer of employees to the maritime, air and land customs. All must apply the Health and Safety Protocol on COVID-19 prevention measures (use masks, gloves, gel, etc.)

2) All trade operators and actors in the logistics chain are urged to continue with the corresponding customs and bonded warehousing procedures so that the country is supplied with food, medicines, medical equipment and other necessary products.

3) Customs personnel are within the exceptions of PCM 021-2020, for which reason the collaboration of the authorities is requested in order to allow these personnel to circulate. The staff includes customs agents, consolidators, shipping agents, warehousemen, airlines, couriers and freight forwarders, who are transferred to customs and warehouses.

III. Customs Clearance 1) The Single Customs Declaration (UCA) must continue to be filed by electronic transmission

together with the payment of the corresponding taxes, in accordance with the provisions of the RECAUCA

2) The risk analysis system can determine that the release is automatic. No need to submit the DUCA to the Customs (electronic transmission only). After presentation, there are 3 ways to proceed with the release:

a) Green Channel: Authorization of release and withdrawal of the goods from the customs or warehouse to circulate through the national territory until its destination.

b) Yellow Channel: The cargo will be compulsorily reviewed prior to its withdrawal and delivery.

c) Red Channel: The customs agent or declarant shall compulsorily present the Customs Administration for the valuation process, with the corresponding documents.

3) All goods must meet the requirements of the relevant authorities (SENASA, ARSA, OIRSA) for import. These authorities can determine inspections together with the Customs Administration if necessary. Any findings in these inspections, including adjustments or penalties, must be documented.

4) After the inspection (when applicable), a Release Authorization Document will be issued, which will be the only customs document for payment of services and removal of the goods from customs or bonded warehouse.

5) The customs authority shall prioritize the clearance of all goods of primary need, medicines, medical and surgical equipment, protective and biosafety supplies and materials, health products and raw materials to meet the Emergency Declaration.

6) The Assistants of the Customs Public Function (Shipping, Air, Freight Forwarders and Consolidators, Courier) are requested to make available to their users the Automation and Digitalization of procedures and documents to optimize customs clearance; and to implement electronic methods of cargo consultation and electronic invoicing.

IV. International Transit of Goods 1) Carriers and drivers of international cargo must be subject to safety protocols. 2) If a driver with suspected symptoms of VIDOC-19 is detected, the Customs authority should

proceed as follows: a) Allow the driver to park the means of transport and manage the change of driver, after

fumigation and sterilization of the means. b) (b) Allow the DUCA to be rectified, making a note of this in the Remarks box.

V. The Promissory Note The use of a promissory note is authorized in case a Guarantee Deposit cannot be previously managed, which must meet all the requirements set forth in article 590 of the Commercial Code. In the case of companies under the Temporary Import Regime (RIT), and other temporary admission regimes, the use of promissory notes is also authorized. The promissory notes will give rise to the issue of the Levante Authorization document. VI. Resumption of Regular Services Once the state of emergency is declared, an impact assessment will be conducted, and a Customs recovery plan will be developed. This plan should include a review of Customs officials who may have been exposed to contamination; and design and implement an audit program to mitigate the risks of abuse of benefits granted during the emergency.

XVI. Other Measures 1) According to the Ministerial Agreement 023-2020 of the Secretariat of State in the Office of Economic Development, from March 18, 2020 to April 18, 2020.

No. Products Size Maximum Market Price

Maximum Supermarket Price

1 Beef Slab Per pound

L 63.00

L. 85.00

2 Beef Rib Per pound

L 50.00 L 57.00

3 Pork Rib Per pound

L 50.00 L 52.00

4 Chicken Without Giblets Per pound

L 24.00 L 29.50

5 White Fish Per pound L 30.00 L 35.00

6 L Fluid Milk eche Fluida 0.946 of Liter L 22.00 L 24.00

7 Whole Milk Powder 360 g L 75.00 L 88.00

8 Butter Cream Per pound

L 30.00 L 42.55

9 Fresh Cheese Per pound

L 40.00 L 66.40

10 Yellow Onion Per pound

L 14.00 L 19.70

11 Tomato Pear Per pound

L 10.00 L 11.15

12 Potatoes Per pound

L 13.00 L 15.95

13 Yucca Per pound

L 7.00 L 8.75

14 Cabbage Per pound

L 3.50 L 5.50

15 Ripe Banana Per Unit L 6.00 L 9.10

16 Sweet Orange Per Unit L 2.00 L 3.00

17 Ripe Banana Per Unit L 2.00 L 2.50

18 Red Bean Per pound

L 11.00 L 16.70

19 White Rice Per pound

L 10.00 L 10.00

20 Spaghetti 200 g L 6.00 L 7.70

21 White Sugar Per pound

L 10.00 L 10.50

22 Ground Coffee 16 oz. L 42.00 L 47.20

NICARAGUA

Government Measures Lack of regulations for the prevention of COVID-19 Despite the official communication of two positive cases of Coronavirus in Nicaragua, the State has not yet issued regulations or decrees to prevent the spread of Coronavirus related to migration restrictions, work suspension, measures affecting labor relations or related to fiscal activity in Nicaragua. On the other hand, it has been reported that in the migratory posts, doctors have been taking travelers’ temperatures and, should a traveler have a temperature of 37 degrees or more, and be arriving from a country reported to have positive cases of coronavirus and respiratory symptoms, such travelers are catalogued as "Suspicious Passengers". Medical care for Social Security members in case of COVID-19 On March 31st 2020, the President of the Nicaraguan Institute of Social Security (INSS) gave an interview to a national media. In that interview, the President of the INSS indicated that in the event that persons affiliated with the Social Security system become infected with COVID-19, they will be referred to the hospitals of the Ministry of Health (MINSA), that is, they will not be treated in the Social Security Medical Clinics where they are commonly treated. The President of the INSS has indicated that the MINSA has authorized 19 public hospitals to deal with COVID-19 and that these medical centers have sufficient instruments for the detection and treatment of COVID-19 infection.

Labour Measures Measures for companies under the Free Zone regime On 23 March 2020, the Tripartite Commission met, composed of bodies representing workers in companies under the tax regime; bodies representing employers in companies under the tax regime; and the Ministry of Labour (MITRAB) and the National Commission of Free Zones (CNZF) representing the State of Nicaragua. This commission has met in order to determine labour measures as a result of the COVID-19 health crisis, for which the following has been agreed:

1) It is recommended that the companies under the Free Zone regime should adopt the necessary and urgent health measures dictated by the Ministry of Health; and adopt the measures that the companies have taken for the protection of the health of their workers.

2) Enterprises may take the following labour measures: a) Granting work permits with percentage of wages b) Advance payment of holidays c) Reduction of working hours (working days or working hours) d) Implementation of teleworking or telecommuting. e) Collective Suspensions of Employment Contracts approved by MITRAB.

f) Other practices that the companies consider convenient to be agreed with the workers.

3) In case of collective suspension of labor contracts, the companies may allege Fortuitous Case or Force Majeure, however, such collective suspension must be agreed by a Bipartite Commission. In the event that there is no agreement, the suspension must be requested from MITRAB, said institution will be agile with the processing of the suspension.

4) In the case of pregnant women, workers over 60 years of age and workers at high risk (older adults, diabetics, cardiac patients, hypertensive patients, those with pulmonary diseases, cancer or diseases affecting the immune system), all work interruptions shall be paid.

5) Companies that adopt teleworking or distance working will not be able to reduce the working and salary conditions of the workers.

The measures may be applied for 30 days from the date of signature of the Tripartite Agreement, the Tripartite Commission shall review the extension of this Agreement. Circular for companies under the Free Zone regime The Tripartite Commission composed of bodies representing workers in companies under the tax regime; bodies representing employers in companies under the tax regime; and the Ministry of Labour (MITRAB) and the National Commission of Free Zones (CNZF) representing the State of Nicaragua, has issued a circular for companies under the tax regime with the following recommendations:

1) Companies under the Free Zone regime should coordinate with the Ministry of Health (MINSA) and nearby Health Center in order to know the protocol of action to prevent the spread of COVID-19.

2) Guarantee the training of workers with respect to the measures that the State has dictated to avoid the contagion of COVID-19.

3) Activate the Mixed Health and Safety Commissions in the work centers, in case they are not formed, they should be formed immediately.

4) Attend to the recommendations agreed upon by the Tripartite Commission. 5) Mr. Ramiro Blanco is appointed to coordinate communications with MINSA, whose e-mail

address is rblanco@cnzf.gob.ni

COSTA RICA

Government Measures

I. Attention to activities of mass concentration Among the temporary administrative guidelines established by the Ministry of Health, mass concentration activities, restaurants, food courts, and cafeterias (including business ones) are instructed to reduce their normal occupancy capacity to 50% as a measure to mitigate the outbreak of COVID 19 and, in addition, to guarantee the following hygiene measures:

a) (a) Equip sanitary facilities and services with toilet paper, drinking water, anti-bacterial soap for hand washing, alcohol gel with a composition of at least 60% alcohol or ethanol and paper towels for hand drying

b) (b) Ensure labelling with cough, sneeze and hand-washing protocols (available on the Ministry of Health website).

c) (c) Surfaces that are frequently touched (handrails, push-button panels, doorknobs, parking tickets, food trays, armrests, seats, etc.) must be cleaned with a 70% alcohol solution or commercial disinfectants frequently.

d) (e) Bathroom and toilet surfaces must be cleaned with disposable material and disinfected daily with a household disinfectant containing chlorine at a 1:100 dilution (1 part chlorine to 99 parts water), prepared on the day of use (10 ml of 5% chlorine to 1 liter water).

e) (f) The cleaner must wear gloves while performing cleaning and hygiene tasks. f) (g) After cleaning, hand hygiene must be carried out. g) (h) Offices and places where activities are carried out must be kept well ventilated, without

creating strong drafts. h) i) In case of having air conditioners, they must be properly checked and maintained with a

logbook visible to the public of their performance. Read full communication The guideline in reference is updated on March 28, 2020, in order to have a more rigid character, indicating that, except for the exceptions set forth in the regulations, all establishments with an operating health permit classified as public meeting places, must remain closed on Fridays, Saturdays and Sundays from 8:00 pm and until 5:00 am the following day. In addition, home services, institutions that by their nature must remain open, health establishments, funeral homes, supermarkets, suppliers, grocery stores, and all establishments with a sanitary permit to operate that do not provide services to the public in person shall be exempt from the above. See administrative measures The guideline in reference is updated on March 28, 2020, in order to have a more rigid character, indicating that, except for the exceptions set forth in the regulations, all establishments with an operating health permit classified as public meeting places, must remain closed on Fridays, Saturdays and Sundays from 8:00 pm and until 5:00 am the

following day. In addition, home services, institutions that by their nature must remain open, health establishments, funeral homes, supermarkets, suppliers, grocery stores, and all establishments with a sanitary permit to operate that do not provide services to the public in person shall be exempt from the above. See administrative measures

On Friday 17 April 2020, the guideline in reference is updated. The current version, being its current version the number seventeen. In this update, it is added among the exceptions of suspended activities:

a. The retail sale of building materials, hardware and plumbing and heating equipment and materials (hardware stores).

b. Retail sales in markets, supermarkets, warehouses, mini-supermarkets, grocery stores and similar.

The above means that the companies dedicated to this line of business will be able to operate in the schedules previously approved in their Sanitary Permit of Operation and the Commercial Patent, in a capacity of 50% of their capacity. As for the capacity, the guidelines establish how it should be calculated, for which it indicates the following criteria:

a. In accordance with the maximum capacity established in the operating health permit, including both workers and occupants.

b. It must guarantee a space of 1.8 meters between each person within the establishment and on the sidewalks prior to entry.

c. In the event that service users must wait to be admitted to the premises, they must be organized in rows where the recommended safety distance applies.

d. With respect to spaces that are not accessible to the public, the provisions of the "General Guidelines for Owners and Managers of Coronavirus Work Centers (COVID-19)" should be applied.

https://www.ministeriodesalud.go.cr/sobre_ministerio/prensa/docs/med_administ_temp_at

enc_activid_concent_v17_17042020.pdf

II. Suspension from schools and extension of the school year

The government has decided to suspend classes in both public and private schools and INA training centers from March 17th to April 4th, inclusive, indicating a return to classes on April 13rd and extending the school calendar to December 23rd. For these purposes, care networks are kept open to ensure that mothers who are heads of household can continue to work and to prevent older people from taking on the care of minors. The care of children is left to the discretion of the caregivers. Read full communication

III. Vehicle Restriction In order to flatten the COVID-19 infection curve in the national territory and to mitigate its side effects, the Government of the Republic announced the new restriction measures that will be in force from 13 to 30 April 2020. See official note Monday to Friday:

• There will be daytime restriction from 5:00 a.m. to 7:00 p.m. for plates throughout the country, with a list of exceptions. During these hours, they will not circulate:

• Monday: 1 and 2

• Tuesday: 3 and 4

• Wednesday: 5 and 6

• Thursdays: 7 and 8

• Friday: 9 and 0

• - Total nighttime restriction from 7:00 p.m. to 5:00 a.m., with a list of exceptions.

• - Regular public transportation -no standing persons- will operate from 4:00 a.m. to 11:00 p.m.

• - Establishments that have a permit to operate and serve the public:

• May only operate from 5:00 am to 7:00 pm, with a 50% capacity.

• Self-service food and beverage service subject to vehicle restriction and on a 5 a.m. to 7 p.m. schedule.

• 24-hour home service will be available Weekends

• Total vehicle restriction, only with access to supermarkets, suppliers, grocery stores, pharmacies and health centers from 5:00 am to 7:00 pm.

• During these hours, vehicles with the following plates will not be allowed to circulate

• Saturday: 0, 2, 4, 6 and 8.

• Sunday: 1, 3, 5, 7 and 9.

• Regular public transportation -without people standing up- will operate from 4:00 a.m. to 11:00 p.m.

• Establishments with operating permits that serve the public:

• Must be closed on weekends.

• Self-service food and beverage service subject to vehicle restriction and on a 5 a.m. to 7 p.m. schedule.

• 24-hour home service will be available. IV. Extension of expired ballots The Supreme Electoral Court announced today, April 15, 2020, that all identity cards with an expiration date between February 4 and July 30, 2020, will remain valid until July 31. This is so that fewer users will have to travel to renew their cards.

V. Update of the General Guidelines for Commercial Condominiums, condominiums with commercial and residential spaces, Residential Condominiums due to the health alert for Coronavirus (COVID-19) by the Ministry of Health On March 27th, 2020, the Ministry of Health updated the general guidelines for commercial condominiums, condominiums with commercial and residential spaces and residential condominiums, due to the health alert by COVID-19. The guidelines are divided into three parts, general guidelines, guidelines for the board of directors to refer to the administration of the condominium, and guidelines for condominium owners and tenants. See guidelines VI. General guidelines for monitoring and lifting administrative acts (health order) of home isolation by COVID-19 In accordance with this guideline, the lifting of the sanitary isolation order shall be governed by the following rules:

1. For persons without symptoms during the 14-day isolation, the health status will be monitored by telephone and, if no symptoms are present during this period, the order will be lifted by means of a telephone call report indicating that it is considered to have been complied with.

2. For the person who starts with symptoms of COVID-19 during the 14-day isolation, the affected person must immediately contact the Healthcare Administration Area to coordinate the sample taking and, at the same time, the Healthcare Administration Area will proceed to notify a second healthcare order in which a new period of home isolation will be ordered for another 17 days from the date of the start of symptoms. On the 14th day of this second health order for isolation, the COVID 19 test will be carried out and, depending on the result, there are two possibilities:

a. If the result is negative, a phone call will be made to indicate that the order is considered fulfilled and the order is lifted. b. If the result is negative but the person has a history of contact with a COVID-19 positive person or comes from a locally transmitted location, home isolation will be maintained and a second COVID-19 test will be taken to determine that it does not correspond to a false negative.

In the event of a positive COVID-19 test result, the person must comply with two consecutive negative results in a 24-hour period to be discharged, so the health ordinance will be extended until the person is considered recovered. See guidelines VII. Government presents first response measures on social protection In view of the rapid expansion of the COVID-19 virus, the Government brought together at the Social Protection table - coordinated by the Joint Institute for Social Assistance (IMAS) - a conglomerate of institutions made up of MCJ, DGME, the Vice-Ministry of Dialogue, MIVAH, DESAF,MEP, PANI, REDCUDI, INAMU, MTSS, CCSS, INA, CONAPAM, CONAPDIS, IAFA, JPS, Ministry of Health, Ministry of Human Development and Social Inclusion and the Municipality of San José

to work on measures to protect the most vulnerable people in the face of the economic slowdown and changes in working conditions. Among the main measures of labour impact we find that, for people with disabilities, there will be the channeling of complaints for non-compliance with inclusive conditions for teleworking, education and virtual training. See note VIII. Additional measures

• New health measures in the face of COVID-19. See official statement

• Today, government authorities announced that new and stronger health measures will be taken from today.

The measures in question are as follows ✓ Total closure of beaches throughout the country. ✓ Obligatory closure of temples and religious cults. ✓ Sanitary vehicle restriction from 10p.m. to 5a.m. starting this Tuesday, March 24th.

Details on who is covered by this restriction and the exceptions will be made public tomorrow. Those who do not comply with the restriction will be subject to a traffic ticket of ₡22.187,93. colones.

✓ As of tomorrow, any foreign resident or with regular status in the country who leaves the national territory, automatically loses his immigration status.

IX. DECREE 42272-MTSS-COMEX creates the National Employment Program (PRONAE) and its respective regulations This Decree amends Chapter V, Articles 24 to 29, of Executive Decree No. 29044-TSSCOMEX of 30 October 2000, which "Creates the National Employment Program (PRONAE) and its respective regulations", so that, once a state of emergency has been declared in any part of the national territory by executive decree, the program may grant the temporary employment subsidy to:

• Persons who, as a result of the emergency, are materially unable to continue to implement the objectives of the projects in which they are participating under the various forms of PRONAE

People who suffer the loss of their job or the usual source of their income, see their income reduced due to a change in their working hours or are unemployed, because of the emergency. See decree X. Scope 74 of La Gaceta 70 of Saturday April 4, 2020: Standards related to COVID-19 The declaration of a state of emergency due to the coronavirus pandemic makes it necessary for the Central Government to issue regulations in real time with a view to mitigating and preventing the impact; and that is why, even on non-working days and early hours, the Scope of the Official Gazette is published in reference to new regulations that are the law of the Republic. See standards

XI. Note on the draft law on the moratorium on judicial and administrative evictions On March 23rd, 2020, Liberationist Deputy Wargner Jiménez Zúñiga presented a bill that establishes a moratorium on administrative or judicial evictions following the recent health and economic crisis caused by SARS-CoV-2. The rationale for this law is to mitigate the impact of the economic crisis generated by the global pandemic and thus prevent individuals, corporations and companies affected by this crisis, subject to judicial or administrative eviction processes, for non-payment of the price of leases. The bill proposes a moratorium for a period of three months, during which no individual who has been dismissed may be subject to judicial or administrative eviction proceedings, and no individual who has been dismissed is unemployed or demonstrates to the judge conducting the eviction proceedings that, as a result of the current crisis, he or she does not receive sufficient income to pay the corresponding rent. The outstanding payments during the three-month moratorium period will be accumulated without interest and would be collected by distributing them among all the months following the moratorium period and according to the remaining term of the rental contract. Each additional collection per month of the amount owed may not exceed 50% of the amount of the monthly fee that was collected up to the time of the eventual approval of the law. With regard to legal persons or public or private companies, the bill establishes the same three-month moratorium, during which no legal person or company that, as a result of the current health and economic crisis, has ceased to receive 20% or more of profits, may be subject to an eviction process. The decrease in profits will be certified by a public or private accountant and the pending payments will be accumulated in the same way without interest and will be collected by distributing them among all the months following the moratorium period and according to the remaining term of the corresponding rental contract, without being able to exceed 50% of the amount of the monthly fee that was collected until now. The bill ends by indicating that, in the event of a conflict and if the remaining period of the respective contract is two months after the moratorium established by the bill, and because no more than 50% of the amount of the monthly fee is allowed to be collected in the subsequent months in which the debt is to be diluted, the parties must reach a payment arrangement before a judge or resort to alternative dispute resolution channels. It is important to mention that we are currently in a stage of extraordinary sessions in the Legislative Assembly, so it is the Executive Branch that currently controls the call for discussion of bills. In this sense, this bill, along with others that have been presented as a result of the health and economic crisis, are on the table as part of the possible projects that could begin to be known in the Legislative Assembly next week. However, there is currently no confirmation from the Executive Branch as to whether or not such a bill will be called.

Migration Measures Initial measures:

• Until 23:59 on April 30th, 2020, only Costa Ricans and residents may enter the country, except for air transport, commerce and supply crews. See press release

• Costa Ricans and residents who enter will have to perform mandatory preventive isolation for 14 days.

• As of Tuesday, March 24, all foreigners residing or with regular status in the country who leave the national territory, automatically lose their immigration status.

Extension of border closure period and migration health measures The Minister of Public Security, Michael Soto Rojas, announced in a press release on April 6, 2020 the following:

• The border closure and related sanitary measures will be extended until April 30 and that provision will be prolonged until the end of the national coronavirus emergency.

• Foreigners who leave Costa Rica will not be able to re-enter national territory and will be prevented from entering.

• In case a person is detected trying to leave or enter illegally, he/she will lose his/her regular status in the country and will be rejected.

• Costa Ricans who leave the country and re-enter national soil will be subject to a 14-day health isolation order and failure to comply with this order will result in a fine of one base salary (₡450,200).

• No tourists or non-residents are allowed to enter the country. To ensure compliance with this measure, officials will be collaborating in the review of the various public transport vehicles that go to the posts of Peñas Blancas in La Cruz, Guanacaste, as well as Tablillas de Los Chiles, Alajuela.

• The humanitarian cases will be assessed by the Ministry of Foreign Affairs, the Ministry of Health and Migration.

At a press conference today, April 20, 2020, Health Minister Daniel Salas reported that the border closure for foreigners continues to be in effect until May 15 of this year. https://www.presidencia.go.cr/comunicados/2020/04/662-casos-confirmados-por-covid-19/

Labour Measures

I. Working people in non-teleworking positions On March 13rd 2020, the Ministry of Labor and Social Security issued the following recommendations to be applied by employers in cases of workers with risk factors (elderly, diabetics, cardiac patients, hypertension, lung diseases, cancer or diseases compromising the immune system) occupying non-teleworkable positions

a) To evaluate the possibility of carrying out a temporary readjustment of functions so that the worker can join teleworking.

b) If this is not possible, allow the worker to take the accumulated leave (if any) or, failing that, grant an advance holiday (provided that the worker agrees).

c) Readjust functions to minimize user or co-worker contact. d) Physically locate the worker so that they work at least 6 feet away from co-workers.

e) Guarantee the worker access to all recommended hygiene and protection implements. The opportunity is also taken to recommend that workers in teleworking positions remain at home and that those with risk factors take the necessary actions to avoid exposure to other people. Read full communication

II. CCSS approves measures to support private companies in the face of the national emergency caused by COVID 19 and a 75% reduction in the minimum contribution base

The Board of Directors of the Caja Costarricense de Seguridad Social (CCSS) approved a series of temporary measures to mitigate the economic impact of the Coronavirus crisis on employers and independent insureds, including the following Until June 30th, 2020, anyone with a payment agreement who is in arrears will not be required to make additional payments to stay current. Until June 30th, 2020, those who have no debt but are in arrears may enter into payment agreements with the sole requirement of paying the contributions of the Worker Protection Law if they are an employer, or making an initial payment of 5% of the arrears if they are self-employed. Until August 31st, 2020, the interest rate on settlements will be reduced by one percentage point to 5.5%. Collection efforts will be postponed until June 30th, 2020, specifically those related to the initiation of proceedings for the closure of businesses due to delinquency, the material execution of the closure, the filing of collection claims or complaints for undue retention. Last night, the Board of Directors of the Costa Rican Social Security Fund (CCSS) approved a 75% reduction in the minimum contribution base for health insurance and pensions during the months of March, April and May 2020, due to the health emergency currently affecting the country. This would apply to the invoicing of employer payrolls, contributions by independent workers (including those with a Collective Bargaining Agreement) and public sector workers who report part time according to the records of the SICERE. Read full communication

III. Authorization to reduce working hours. See legislative file Bill 21,854, on authorization to reduce working hours in the face of a declaration of national emergency, was approved by the plenary of the Legislative Assembly in the second debate that took place in an extraordinary session on Saturday, March 21, 2020. It will become Law of the Republic once it has been signed by the President and published in the Official Gazette. With this bill, employers who consider it convenient may request the Ministry of Labor and Social Security to authorize a temporary reduction of up to 50% in the number of hours of the ordinary work day (and consequently the salary of their employees) when as a direct consequence of the emergency situation, their gross income is affected by more than 20% in relation to the same month of the previous year. In the case of companies where the decrease in their gross income reaches or exceeds sixty percent (60%) in relation to the same month of the previous year and as a clear consequence of the event causing the declaration of a national emergency, the temporary reduction of up to 75% of the weekly working days may be authorized.

This legal measure becomes an alternative to avoid dismissals of personnel in times of crisis.

IV. General guidelines for owners and managers of work centers by COVID19. See guidelines Although these guidelines already existed since the beginning of March, the health authority updated them to find them consistent with the measures that the current situation warrants, so a new version has been issued with some additions. General guidelines:

✓ Use the resource of the telework modality, as established in the executive decree 073-S-MTSS.

✓ During lunch time, remember to keep the capacity at 50%. ✓ Guidelines for managers or heads of work centers: ✓ Evaluate which are the positions that can be performed in the telework modality, with

the purpose of signing contracts, telework addenda, following the regulations established by the institution, as well as the application of Directive 073-SMTSS. The continuity of services must be taken into account.

✓ Establish roles/hours in the institution's canteens, in order to keep the capacity at 50%. ✓ Suspend, as far as possible, face-to-face meetings, relying on the use of information

technologies ✓ Avoiding trips and tours at home or abroad. If the trip is indispensable, take the necessary

hygienic measures. On your return to the country you must be in home isolation for up to 14 calendar days.

✓ All workplaces must implement the respective risk management and occupational health plan.

Control guidelines: ✓ In the event that there is information that a worker has been ill with manifestations that

meet the definition of a case and is attending the work center, the head office should send him/her to a medical evaluation so that the doctor can define the behavior to be followed.

V. Temporary suspension of employment contracts. See decree

The decree in reference complements the already existing regulation of the suspension of the work contract, in order to make the adequate application of this figure in the context of a national emergency. The request for the temporary suspension of the employment contract must be submitted on the basis of facts that are consistent with the emergency measures. The employer may request it at any time before the Labor Inspectorate of the headquarters where the work center is located, as long as the cause that gave rise to it subsists, but if he wishes to operate from the day on which the generating event occurred, he must present his request within 3 days following the occurrence of the event. The memo should contain the following information:

• A clear and concrete statement of the facts on which you base your request

• Indicate whether the suspension is partial or total

• The approximate time frame requested for the temporary suspension of the employment contract.

• The positions for which the temporary suspension of the employment contract is sought.

• The corresponding list of working people and their e-mails.

• Identify a workers' representative for the purposes of

• Enter an e-mail address to receive notifications

• Affidavit, authenticated by a lawyer, stating the grounds for the application, that it complies with the payment of the corresponding minimum wage and is up to date with the payment of social security contributions to the Costa Rican Social Security Fund and the National Insurance Institute.

If it is a legal person, this must be stated additionally:

• The name of the company and the number of the legal certificate.

• The corresponding legal status must be provided.

• If the application is made by a person other than the legal representative, a special power of attorney must be provided

The head of the Labour Inspectorate will have a period of two working days from the time the case is reported to it to issue the corresponding resolution. In case of rejection, the manager may appeal to the National Directorate of Labour Inspection, which must resolve the appeal within three working days, without prejudice to resorting to judicial proceedings, since the administrative channel has been exhausted. Once the deadline for resuming work has expired, the Labour Inspectorate will be responsible for informing the workers of the resumption of work, under the terms established by article 77 of the Labour Code.

VI. CCSS clarifies that notification efforts for collections or business closure procedures are suspended

As a measure to address the financial situation of companies and independent workers before the COVID 19, the Costa Rican Social Security Fund has chosen to provide face-to-face attention at the headquarters and its branches until noon and suspend, by agreement of the Board of Directors until June 30, the management or notifications of financial or administrative procedures such as notifications of collection, disabilities, business closures. See note VII. Act on solidarity-based financial support financed by the compulsory supplementary

pension scheme Deputy Franggi Nicolás Solano presents this bill on March 31, 2020 to the Plenary of the National Assembly, by virtue of which she suggests that all unemployed workers; with suspended contracts; with working hours reduced by fifty percent or more of their salary or independent workers, be authorized to withdraw the amount of their last three salaries contributed to the CCSS, by means

of monthly drafts from the Banks of the National Banking System, using their Mandatory Complementary Pension Fund account as a guarantee, based on the following rules

1. The worker shall have this right provided he has an account in his Mandatory Pension System, regardless of the amount available. If it is less than the amount requested, the advance shall be adjusted to the amount credited to the account.

2. The amount shall be drawn monthly, the first week of each month, for a maximum period of three months, at the request of the worker for the equivalent of the last salary reported to the CCSS, provided that the money available in his or her account covers the total requested. When a worker has a minor report by virtue of a disability, he will be given a draft equivalent to the salary prior to the disability.

3. The application may be submitted from the time this regulation is enacted and during the following six months.

Regardless of the use of this authorization, active workers will continue to be affiliated to their current complementary pension operator and will continue to contribute to their accounts. See project 21892 VIII. Approval in first debate of the Bill for the Protection of Workers during the Covid-19 Emergency. File No. 21,909 http://www.asamblea.go.cr/Centro_de_informacion/Consultas_SIL/SitePages/ConsultaProyectos.aspx The project in reference, which proposes the creation of a subsidy for the attention of the condition of unemployment, temporary suspension of the work contract or reduction of working hours of the workers of the private sector who lose their employment or whose income has been affected as a result of the measures adopted during the phase of response and rehabilitation of the Emergency by the virus COVID-19, using the difference between gasoline sales prices at service stations and the lower sales price resulting from the application of the price methodology, was approved today in the first plenary debate of the Legislative Assembly, after a motion for a substitute text was authorized. IX. Legislative Decree 9839. The Decree in reference approves the bill 21.874 to reform the Worker Protection Law to allow the delivery of the Labor Capitalization Fund (FCL) to workers who have recently been affected by the economic crisis generated by the Covid-19, either because they have suffered the suspension of their work contract or the reduction of their working hours. The deputies of the Legislative Assembly approved on April 3, 2020, in the second debate, the project 21,874 that reforms the Worker Protection Law to allow the delivery of the Labor Capitalization Fund (FCL) to workers who have recently been affected by the economic crisis generated by Covid-19.

The beneficiaries may be persons who have suffered the suspension of their work contract or the reduction of their working hours. If a worker wishes to receive the Labor Capitalization Fund (FCL), he or she must submit the application along with a document issued by the employer stating the suspension or reduction, and the pension operator will have 15 working days to deliver the money. X. Implementation of the Bono Proteger as an economic aid for people affected by the

COVID-19 On Thursday, April 9, the President, the Minister of Labor and Social Security and the Minister of Human Development and Social Inclusion announced the beginning of the registration process for applications for the Bono Proteger; a temporary economic aid of three months that will be provided to people affected by the health emergency of COVID-19, either by dismissal, suspension of work contract, reduction of working hours, independent and informal workers. The amount to be granted will depend on each particular situation. Applications will be free of charge and can only be made virtually through the platform created by the Government: proteger.go.cr, which provides general information on the subject, answers to frequently asked questions and an application form. For the exceptional cases of people without connectivity, the support of technological facilitators selected by the MTSS and IMAS will be promoted and announced soon. Official notes: http://www.mtss.go.cr/prensa/comunicados/2020/abril/cp_casapres_258_2020.html https://www.presidencia.go.cr/comunicados/2020/04/gobierno-lanza-bono-proteger-para-personas-trabajadoras-afectadas-por-covid-19/ By this Monday, April 20, 2020, the National Emergency Commission and the Ministry of Labor and Social Security have managed to pay 90% of the total payroll existing to date for the payment of the Bono PROTEGER, entering a second stage in which the approval of the extraordinary budget presented by the Executive is required to cover all persons who apply and qualify for its reception. https://www.presidencia.go.cr/comunicados/2020/04/cne-y-mtss-completan-29-649-gestiones-de-pago-del-bono-proteger/ On Monday, the MEPs of the Finance Committee unanimously approved the extraordinary budget for 2020, focused on the health emergency caused by the COVID-19 pandemic. The budget is ₡369 billion, of which ₡150 billion will be transferred to the Plan Proteger fund, which will provide subsidies to workers whose income has been reduced due to the pandemic. https://www.teletica.com/255139_diputados-dictaminan-presupuesto-extraordinario-para-atencion-de-la-emergencia-del-covid-19 XI. CCSS Board of Directors approves financial measures for IVM credits

On Wednesday, April 8, 2020, the Board of Directors of the CCSS decided to follow the Central Government's directive to take all necessary and effective measures to achieve a readjustment of the credits for disability, old age and death without exposing the optimal functioning of the institution, so it was decided to take the following measures: a. The postponement of the payment of the April, May and June quotas to those debtors who are up to date and who request it, for which purpose the economic affectation they have as a result of the COVID-19 crisis must be demonstrated. To this end, the principal and interest debt will be capitalized and reflected in an extension of the credit term. Only the amount corresponding to the credit policy granted to them will have to be paid in the months described above, and all the above will be recorded in the file. b. During the months of April, May and June 2020, credit operations that are less than 90 days in arrears as of March 31, 2020 shall not be sent for judicial collection. To do so, the person must appear and demonstrate that he or she is affected by dismissal, suspension or reduction of working hours in accordance with the COVID-19. See note

As of Friday, April 17, 2020, those interested in applying for the benefit of deferment of payment of mortgage loans under the Disability, Old Age and Death (IVM) regime during the months of April, May and June, can make their application in a section enabled in the COVID-19 web module of the Costa Rican Social Security Fund (CCSS), specifically in the link www.ccss.sa.cr/pensiones. Debtors who do not qualify for this benefit must only cancel the corresponding credit policies during the months described above. Self-employed workers can also benefit from this benefit as long as they can prove that they have been economically affected by the COVID 19 crisis. This benefit is available to self-employed workers, by means of a sworn statement authenticated by a lawyer or a certificate of income from a certified public accountant (CPA). In case of queries, users can write to infocrobros@ccss.sa.cr https://www.ccss.sa.cr/noticias/pensiones_noticia?ccss-habilito-en-plataforma-web-solicitud-de-postergacion-de-pagos-de-creditos-ivm-ante-covid-19

Financial Measures Measures taken by the Government of Costa Rica and regulators The Government of the Republic, the Central Bank of Costa Rica (BCCR), the National Council for the Supervision of the Financial System (CONASSIF) and the General Superintendence of Financial Entities (SUGEF), approved several measures and provisions of a monetary and financial nature, with the purpose of mitigating the economic impact suffered by our country due to the COVID-19 pandemic.

• The BCCR approved a reduction of the following rates as of March 17, 2020 The BCCR approved a reduction of the following rates as of March 17, 2020: (i) Monetary Policy rate

by 100 base points, to place it at 1.25% annually; (ii) gross interest rate of the one-day term deposits at 0.01% annually; (iii) gross interest rate of the Permanent Credit Facility at 2.00% and (iv) rate of the Permanent Deposit Facility of the Integrated Liquidity Market at 0.01%. See complete note

• CONASSIF extended to June 30, 2021, the possibility of renegotiating up to 2 times the agreed conditions of the credits, without these being considered a special operation and therefore these adjustments will not negatively affect the credit rating of the debtors of the financial system. The measure includes loans greater than 100 million colons (approximately US$176,400), which previously did not qualify for this purpose. Additionally, operations under that amount that to date have already had 2 readjustments in the last 24 months, may readjust their operation once more during the period ending June 30, 2021, without qualifying as a special operation.

• The SUGEF adjusted the minimum accumulation of counter-cyclical estimates to 0% so that financial institutions can place the amounts they would have allocated to those estimates in loans.

• The Government of the Republic issued a directive instructing State-owned commercial banks to take the necessary measures to readjust the credits of the affected debtors, including decreasing interest rates, extending the term, extending the payment of principal and/or interest, and accepting extraordinary payments of principal without penalty. In addition, this guideline urges all other financial institutions operating in the country to apply measures in the same direction. See complete note

New measures adopted by CONASSIF On Monday, March 23, the National Council for the Supervision of the Financial System (CONASSIF) adopted a series of measures complementary to those previously established, to address the situation generated by the spread of COVID-19. The measures are transitory and will apply until March 31, 2021:

1) It will be allowed that the follow-up analyses of the debtor's payment capacity for the credits already granted, are not carried out under scenarios of financial stress, to avoid a deterioration in the debtor's rating derived from those analyses.

2) With the sole purpose of ensuring the expeditious granting of extensions, readjustments or refinancing, the financial entities that consider it relevant may:

a) Exclude in their credit policies and procedures the presentation of information usually required for the purposes of analysis of a debtor's capacity to pay.

b) Preserve the level of payment capacity that the client had assigned prior to the request of the modification in the conditions of the credit.

3) To allow for the establishment of grace periods (at the discretion of each financial institution), without payment of interest or principal.

4) The application of regulatory measures to bring a supervised financial institution to an "Irregularity 2" status may be suspended for a period of 12 months, when losses occur in six or more monthly periods in the last 12 months. According to the regulations in force, a grade 2 Irregularity must be declared by the General Superintendence of Financial Entities in the event

of more serious instability situations, which require the mandatory adoption and execution of a clean-up plan.

5) The Superintendent of the SUGEF may, until September 30, 2020, based on system risk elements or when it is prudent, provide for the modification of the parameters that determine the levels of normality or irregularity for the liquidity indicators.

6) As regards counter-cyclical estimates, and during 2020, with the aim of adding timeliness and effectiveness to their dynamics, the potential capacity of institutions to receive income from the decumulation of provisions is increased. This measure is consistent with the recent decrease in the minimum level of counter-cyclical requirements, as well as with the reduction in the rate of accumulation of these estimates, both adopted by the SUGEF the previous week.

Tax Measures Extraordinary measures The Legislative Assembly approved the bill that seeks to counteract the economic effects generated by the coronavirus. The extraordinary measures to be implemented are:

a) Moratorium on the payment of VAT and selective consumption tax: The declaration corresponding to the months of March, April and May 2020 may be presented during the months of April, May and June 2020 without simultaneously making the payment. The tax corresponding to these months may be paid no later than December 31, 2020, without incurring in the payment of interest or fines

b) Moratorium on the second partial payment of the profit tax: It is authorized not to make the partial payments of the profit tax that would correspond to the taxpayers in the months of April, May and June 2020. This moratorium does not include the first payment to be made in the month of March 2020. Nor does it apply to taxpayers with a special tax period previously approved by the Tax Administration who must declare and pay the tax in the months covered by the moratorium.

c) Tariff Moratorium: During the months of April, May and June of this year, imported goods may be nationalized without paying the corresponding tariffs. By December 31, 2020, the payment of the pending duties must be complied with without the surcharge of fines or interests. Agricultural and livestock products classified in Chapter 1 to 24 of the Central American Tariff System are excluded.

d) d) Exemption from VAT on commercial leases: For the months of April, May and June 2020, commercial leases will be exempt, provided that the lessee and lessor are registered in the Single Tax Registry, General Regime or Special Agricultural Regime. The Regulation and its respective amendment state that this exemption applies to both leases of real estate or personal property (including tangible and intangible) used in profit-making activities.

Teleworking for Companies under the Free Trade Zone Regime Under the National Emergency Decree in relation to COVID-19, PROCOMER, COMEX and the General Directorate of Customs issued a joint statement to authorize the transfer of computer equipment and furniture used by employees of companies benefiting from the Free Trade Zone

Regime so that they can perform their duties under the telework mode, without the prior payment of taxes. In summary, companies must make an inventory with the following information:

• Identification number of the asset.

• Description and main characteristics of each good that leaves the enabled area.

• Name and identification of the person assigned to use the equipment.

• Location of their home or place where the employee will telework.

• Inform the Customs control and copy PROCOMER to the e-mail asesores@procomer.com The companies under this Regime will be responsible for the damage, breakdowns, theft or loss of the equipment that is removed, being obliged to pay the corresponding taxes. See complete note The Ministry of Finance will attend to the digital procedures The Ministry of Finance announced that as of March 19 and until further notice, its offices will remain restricted and will provide their services digitally through the web platform, e-mail and telephone lines. The tax formalities could be carried out by e-mail, unless the person does not have access to this means or needs to deliver a physical document. If the taxpayer has a digital signature, there should be no impediment to the filing and processing of the application. The ATV, EXONET and TICA computer systems continue to function normally. Temporary measures for control procedures Due to the health crisis generated by the COVID-19, the Ministry of Finance has informed that during the months of April and May 2020 it will not notify new communications of the initiation of control actions, determining resolutions, sanctioning resolutions, nor the resolutions on the revocation appeals presented. The inspection processes notified prior to April and May 2020 will continue. For the development of these procedures, all documents submitted to the Tax Administration shall be digitally signed and their authenticity may be verified once the procedure is resumed normally. The auditor and the taxpayer may previously coordinate whether the final hearing to present the regularization proposal is to be held in person or virtually. For those auditing procedures that are in the appeal phase for the knowledge of the Administrative Fiscal Tribunal, as of Monday, April 13, the deadlines for presenting the pleadings and defense evidence were resumed. ICT approves moratorium and other measures by COVID-19 The Costa Rican Tourism Institute (ICT) charges a 5% tax on the sale of each air ticket that originates in Costa Rica for international travel, another 5% tax that applies to the purchase of tickets whose destination is Costa Rica and a $15 tax on the income of each tourist. On March 31th, the ICT's Board of Directors agreed to implement several urgent measures in an effort to support those required to meet the fulfillment of their tax obligations in the face of the crisis that the coronavirus has triggered. Among the measures is a tax moratorium on the above

taxes for the months of April, May, June and July 2020. Tax payers will have until November 30th to make the payment due for the months of April, May, June and July 2020, without incurring penalties or interest. However, during the months of April, May, June and July the respective tax returns must continue to be filed. To benefit from this moratorium, a request for non-payment due to liquidity problems must be submitted. Additionally, the applicant must be up to date as of February 29th, 2020 in the fulfillment of obligations with the CCSS and the Ministry of Finance and not have any debts in judicial collection with the Institution. Companies that do not qualify under the above, have the possibility of requesting payment arrangements with the ICT. See note