We would like to welcome everyone to the business response and call about the impact of doctor's measures related to the COVID-nineteen. This call is directed to the Internet and the link is at www.badescu.irond, Before proceeding, we would like to mention that topics related to the Q1 earnings will be discussed on its 3rd year conference call and that forward looking statements are based on the beliefs and assumptions of Cempo Bradesco's management and teleinformation currently available to the company. They involve risks, uncertainties and assumptions as they relate to future events and therefore, they depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors may affect the Q2 results of Ocogradiz and new currency results could look materially as expressed in such forward looking statements. Now we would like to Ladies and gentlemen, good morning on behalf of Bradesco.
We would like to welcome you all to our call. To which we will share the various adopted to help overcome the crisis of outside pandemic and the effect of the economy and Brazil as a whole by means of measures aiming at preserving the health of our people, in service to our clients, protection of our shareholder value and support to society. I would like to mention that we are seen an unprecedented situation and the installations come to us at every single moment and there to different positioning on the part of our organization. So what we have today and that This presentation today is based on the best information we have about this quarter right now. At the end At the webcast platform During today's conference, we have the presence of Mr.
Sabi de Lazari, CEO of Bradesco, Andre Curley, Vice President, Technology and Mediros de Cement Systems Operations, Marcelo Morillas the And myself, Fernando Horadio, Director and Chief Economist and Carlos Ferrecci, Market Solutions Director. Now I would like to give the floor to our Thank you very much, Leandro. Good morning, My friends, and I hope everybody is okay, and I hope you have all had a very good Easter. Thank you very much for accepting our invitation for this call. During this, we will be sharing the measures we have adopted to help overcome the Needless to say, the moment we are living today is indeed as well as the magnitude of this crisis that is revolving.
The prices that we said before was not generated by the banks, but certainly the banks are an important part of the solution. I do need rest assured that we are doing our share. To begin with, we have a strong sound and liquid banking system, which is totally necessary in any economy. Our people have been working tirelessly to keep the bank up and running and serving our clients with our branches and digital channels as well. And we have made our best endeavors and very quickly we were able to give our client access, both to contract When the magnitude of the crisis became evident, we focused our endeavors on a few basic objectives.
1st, we put measures in place to take good care of our workforce, ensuring their well-being and giving them all the necessary conditions to work in safety besides looking after everyone's health. We made our best endeavor to continue delivering services to society and we can say that our objectives have been reached. Above all, our objective is to help overcome the crisis. As I said, we know that we are part of this solution. Nevertheless, we must mention that the bank being capitalized on lipids is fundamental so that we really contribute to boost the country's recovery.
Now going to Page number 3, the crisis where the crisis first hit our immediate and formal concern for us with the safety of our people. We have 81 confirmed cases of coronavirus and thank God most of them are very well. We only have 4 cases that are in a situation that requires life to you and there will be other cases that people are At home, they are recovering from the coronavirus. The first thing that we've had was We need to guarantee the job for the at risk people and we have the pregnant women and the We were doing preliminary work At the bank, the crisis required us to be very quick. Just to give an idea, we have 90% of our office people, Exceptionally to the branches, 90% of the people.
And the strategy at the branch, we have half on the branch is working for 1 week and then on Friday, we have a very in-depth cleaning of the branches. And on Monday, the other team comes to work. And those who don't work individually are going to work on a remote basis so that all our branches in Brazil may be open and serving our clients. We have the commitment of not weighing off everybody and we have already paid 50% of the 30 salary. And we made available a very important service here at the bank, an open line, which is part of the Hiba Bay program, Sanintas, which We have over 70 doctors that guide our employees and their families in case of a suspicion of COVID-nineteen.
On Page number 4, we show you very quickly the measures implemented to Our clients and together the Citibank and the Central Bank to be the first signs of the crisis, we We understood the unique features of this moment and we adopted The first one was the rollover of the short term maturity debt. First, we granted a 60 day extension in April, May and afterwards for clients who need it, we will probably have to grant further extensions. Just to give an idea of figures in the 7 1st days of extension, maybe 10 days, we have 1,100,000 clients to extend their contracts. And the measure has a very broad reach and encompasses both individuals and legal entities. And for SME, with annual revenues $350,010,000 We created a new credit facility backed by the government at very attractive rates and conditions.
And with the new money, so that companies may pay their payroll expenses and the government do take 85 the ones that are already preapproved means this program with the government. We have an additional 10% have already resorted to these lines. And we have already preapproved over 125,000 companies for this credit. They have already been they are already available and involving 1,700,000 people towards the employees of the company in the large corporation segment. We see clients mostly in good financial conditions, business characteristics of a resilient company.
And on the 1st day of the crisis 10 days ago, there was a huge increase in the demand for working capital companies saw some kind of insurance for working capital. And on some days, we have huge requests for liquidity by these companies just to get an idea of the average ticket or adding all the tickets that we received daily at the corporate desk, we had BRL 1,520,000,000 per day before and This number reached BRL 20,000,000,000 compared to what we had before the crisis. And this became dilutive over time so that we could not only cater to very large corporations, but also SMEs and distributors as well. So we have already overcome this problem. Going back to BRL 2,000,000,000 per day on average.
One important point, A lot was said about liquidity of the bank. The Central Bank from March 7 to today, we meet with the requirement of BRL 26,400,000,000 during the same period that they contracted $32,800,000 in new credit operations. So we do not have the situation regarding liquidity. We have even more the variation of reserve requirement by the Central Bank. So the situation is totally back to normal.
We already have 3 days of the huge demand for credit, but now it was already stabilized and we will continue to serve individuals, SMEs, large corporations such as we have always done during the history of the bank besides other measures for investors in all segments were implemented, conference calls and daily live broadcast advising them of their investments and also discussing the recent announced regulations and measures. Now going to Slide number 5. We adapted the bank, government and policy to the situation we are living. And We established a crisis committee for the bank with all the VPs and COs to analyze the whole picture of coronavirus in terms of human resources, technology, contact centers, wholesale, retail, High income only has said that, if of the moment that we're living today, We have a daily meeting with our Board of Directors that have been supporting us every single day, receive the information and supporting us on these decisions that we must make on a timely basis in order to continue to serve our clients. All our committees are functioning as usual by video conference and changing the habits of our meetings, of course.
And the branches are open to help especially those who need help the most and the digital channels allow our clients to have practically all their banking services needs met. And we believe that the current situation will lead to an increased use of the digital channels. Now going to Slide 6, We see some examples of actions put in place in the last few weeks for the benefit of society together with other banks. We have donated 5,000,000 rapid tests, 15,000,000 masks per 2 CT scanners Besides other equipment and partnerships with other private banks, which have been sent and that we support domestic production of ventilators and other items that we will be donating to the Ministry of Health and donation by the district. So we jointly with other companies to build a shared hospital in Rio The 200 beds, the 100 of the beds ICUs and monitored to be distributed to the public network health network so that We may support these calls because that will see a higher demand in the next 2 days months.
Now going to Slide 7, Let's talk about the debate with Ciburis. We have fully adapted our activities to this new environment. Most of our employees are working from home management, commercial and service team, both are owned and outsourced. We are giving special attention to supporting the 3,600,000 beneficiaries of the De Jesus Augeo, who are found that is dedicated to COVID-nineteen information that we have signed with question and answer in the new global network, we established an exclusive program for COVID-nineteen expected phases and we have extended the working hours to every day of the week and no need for scheduled appointments. We believe that we are truly giving our clients a services.
Slide number 8, our digital channels play a fundamental role in our client service and we see a growing number of times using digital channels for their banking activities and also a significant campaign fees in the number of transactions through our app. We focus on communication, explaining to our clients how to use it and We quickly gave a message to the joint measures put and placed by the government, Central Bank and the banks. And we have been quite as well, the functionality for the extension of contracts was made available on March 30 through Internet Banking and April 2 on mobile. And the new federal cement was already available to clients on Matt and Fraser on April 6th, And in a 2 day, the client well, the first April 6 on the 1st business day after the official resolution was published. Now Page 9, as I said before, Our digital service for a vital role for acquiring 96% of transactions are currently carried out by means of self-service.
And besides working at the branches, our business managers have corporate mobile phones with access to most of the tools that they would have on their beds and they offer consultancy via conference call or video conference, Our clients' finances are being tracked and those facing cash flow difficulties are being supported either with credit or debt expansion All branches, as I said before, are functioning 100% in allowed locations when not on shopping malls that are closed to the public. And we have special opening hours from 10 a. M. To 2 p. M.
And from 9 to 10 am, we have the slot for average groups only. We are operating with reduced teams at the branches and with weekly so as to preserve the health of our people. And we Since the beginning of the quarantine, we have been organizing lines outside the branches with mandatory distances between clients and priority services according to different degrees in both in each location, and we allow a limited number of clients inside the branches which take distance between them and all branches. Now Slide number 10, regarding our credit policies right now, also to give support to our clients, We have mapped exposures to more fragile industries and companies, and we have a permanent line communication with them by means of our relationship teams. Our credit recovery teams are 100% active solutions for clients in need and we have improved the new variables in our credit model so as to have a more precise in the interest rate differently from what was published by some communication vehicles.
Unfortunately, the interest rates have not undergone changes. And on Friday, we said the basis to the Central Bank that interest rates are being maintained in whatever portfolios, they are being kept exactly the same. And in the last 3 weeks, the rates So the maintenance of the rates and in some cases even a decrease in these interest rates. So there is no attitude whatsoever on the part of the bank or any intention to increase interest rate charged from our clients and they are being maintained at the levels that we had before everything that is happening right now. Now on Slide 11, an extremely important point in crisis management, government has reached management policies, our capacity to help clients is related to the maintenance of our health as a bank.
We got into the scenario with a strong capital base and adequate liquidity margin to meet our clients' needs. Besides, the Central Bank has been communicating with banks on an ongoing basis promoting measures that drive an even higher liquidity and sovereignty to the system. We are consistently monitoring the risk appetite and operating caps, reviewing them whenever needed. In order to conclude, I would like to emphasize that we are fully aware of the magnitude of the scenario's challenges, and it is our responsibility to help solve the problem together with each society at large. As I said before, we see the economy falling something about 4% in 2020.
Nevertheless, There could be a strong recovery with coordinated efforts between society and government, banks and companies so that we may leave the situation behind as quickly as possible. We want to help the recovery of the economy with preservation of companies as well as the highest possible number of jobs. Now we are available to answer any questions that you might have. Now we will start the Q and A session. Questions may be sent in writing by means of our webcast platform Good morning.
This is Irete. I will coordinate the Q and A session. And please send your questions in writing I have 2 questions here. How many requests for debt negotiation have you received so far? And are you going to increase the grace period that you are going to?
Are you going to increase your donations to fight the coronavirus situation? Vinil, this is Otavio. Thank you for the question. Regarding the extension or the renegotiation, the extension of the installment, we have received 1,200,000 requests The contract has not been changed in terms of the values, in terms of the rates. So this is for clients that find themselves in more dire states and the extension because of the COVID situation, we might have to extend them further.
So we are already discussing them at the bank and as April may have already been solved as of the end of April. If the problem continues and we believe it will continue based on everything that we hear about it. We believe that not only Bradesco, but all the other banks as well will take the necessary measures to give an additional 90 days to these clients so that They may reorganize their financial life and go back to paying their installments on a timely basis as soon as the situation resolves. Regarding the dimensions, the bank has already been to the Ministry of Health and they will continue to make our donations According to our priorities, whatever is more a bigger emergency, the purchase of because sometimes it's easier for you to put money. You have really to give them the equipment in order to meet their And I would like to congratulate in Peru for what they announced today in terms of donation.
We are very proud to other members of the banking community is helping and doing an important job and more than that, structuring job for resilient society. And this is something that Rudacao Bradesco, the Bradesco validation has been renewed since 1956 with thousands of screws scattered throughout Brazil, with that EUR 7,000,000,000 In the last few years, only through Badesco Foundation for needy children, We are investing BRL 682,000,000 in Ultradacao Bradesco to look after these children. So all these companies that are working and helping the sector, all of that is extremely valuable And I think it is a phrase that I believe this should happen on an ongoing basis. This should perpetuate itself so that we may really overcome the fragilities of society. So it's a great initiative and we would like to congratulate every company, every bank that is doing this.
We have 2 additional questions here from Artigas Sin from Itau BBA. What is the worst moment of delinquency? And could this be reached and exceeded? What is the percent of the contracts that are being renegotiated for 60 days? Is there room I believe that the crisis of 2,008 and 2011 are the big parameters that we have.
But certainly, if you see the extension of the COVID-nineteen, this is going to be even worse than the previous prices and our models are being worked on so that we may put an even bigger forecast in the Covitien area, we might have the worst delinquency. We hope it does not materialize. However, we have to consider the worst case scenario in our forecast. About your second question, they represent about 15% of the installments that we will receive in April May and what was done so far represents about 15. And as I said before, I believe that all the banks will be willing and would be obliged in fact, it will be the obligation of the Paraca Banks to extend to May June and give an additional 60 days so that people may have more breathing space so that after we overcome this moment, they may go back with Elliott, I'm autonomous along the line of credit renegotiations.
And for us to give the proportion of clients in each one of the segments and that are applying for the rollover of their debt. Basically, the 60 day extension, We are talking about individuals and SMEs and micro companies as well. The micro and small companies are resorting to this more than the others. In the large corporations, the situation is different. We have been supporting them, but it is the bank's risk.
And the mega companies, the mega corporations They are more capitalized. And the condition is different in terms of borrowing from the banks. And from now on, I believe that what will be done is we have to find specific solutions for each one of the sectors. The airline sector, for instance, we have to find a more specific solution. And a solution which is tailor made for each one of the sectors for A30 Auto sector, we have to find a specific solution for the auto production and the supply chain as well and we are going to have a meeting with the Central Bank and we are going to tackle these subjects more specifically.
And from now on, We will have specific treatment within 2 specific accessories. Solutions for Eastern and B segment. Michael from Bloomberg. What is the level of capital you've had to work with Have you been acquiring assets from institutional investors? And there are other questions here.
What about the dividend payout policy I would like to give the floor now to our Treasury VP Regarding assets of institutional investors, we see some moves on the part of clients trying to do this in the secondary market and this is working there and we have been making some isolated acquisitions, nothing different from business as usual, but we have a slightly higher than the average, but nothing that may regarding the funds and the funds held, and we are adopting requirements on these operations. So the dynamics are still healthy and with funds coming to our reserve requirements, but nothing that Could you talk about capital visibility? Same levels of capital that we have so far, nothing different. These are profitable levels and that should be maintained regarding dividends Our bylaws say that we must pay dividends 30% on the net income and this will be maintained. I would like to know if you confirm The information that you are acquiring, H.
Jacobs Bank. Well, we have known the business for a long time. I do know very well that we are always looking for good opportunities in the market. And last year, we acquired a bank in the United States because this was very important for our strategy of growth and high income. But There is no other bank or FinTech that is in our radar screen right now.
The whole situation that we see and the impact of the crisis that will come, There is nothing on the table that we are studying some syntax could be less capitalized because of the difficult situation, but We don't see anything right now. We are not studying any acquisition. We will continue to look for good opportunities, but not right now. Although the bank does not work with expected losses, we have always been conservative. After the tax credit in the 4th quarter, we reached EUR 145 Could we expect an increase in the coverage Good morning.
In fact, the business has always been very careful regarding our positions and our coverage ratios. And certainly, we are reading a picture now that we don't really know what will happen in the future. So we are studying our balance sheet right now and then undoubtedly, if possible, we will be making additional positions because these scenarios will not design either for But this for any other organization, this was not expected. And due to the fact that we have always been very conservative I'm very concerned with the capacity of the bank and the capital structure of the bank. So we are going to dive in debt balance sheet now and if the opportunity arises, we will be building additional provisions in order to tackle the expected loss scenario that we have ahead of us depending on the levels of delinquencies in the 3rd and the 4th quarter.
In relation to Badescu Saoudji. You talk about Badescu Saoudji's cancellation of selected deliveries? And does it offset A question about delinquencies. What kind of delinquencies do you expect Could we reach 6% or is this a level that you do not expect? Do you know where your allowance for doubt that your ABB will be for 2020?
And what about the level of negotiation renegotiations we expect? Thank you, Thiago, for the questions. I will give the floor to Vinicius What we see right now is a significant loss in selected We expect a gradual substitution of this drop because of the increasing emergency procedures and hospitalization, I think it's a little bit too for us to have a clear picture of this movement, so to say. We have been very much engaged with our service providers and we have been refining our models in order to understand the progression This is a bit of COVID-nineteen at the time for treatment, so it's a little bit too soon for us to see a clear picture. And I think it's worth mentioning that in spite of the drop in elective surgeries may a major part of them will be rescheduled and very probably we will have this inventory so to fix or this backlog that will come back.
So I don't think it's valid to say There will be a rescheduling of the backlog We have been tracking this, so as we have a more clear picture. Regarding the impact in 2021 based on the extension of installments that the market is doing in terms of basically, we believe that some impact could decrease for provisions in 2021. And of course, this depends on the extension and the depth of the crisis and the duration of the crisis so as to have any predictability in the next year. Right now, We are focused on understanding the current impact, the impact for this year, but we expect something Of course, the procedure that should happen will cancel. We consider the cancellations that are not really cancellations, but they are in fact postponement.
We know that it's a one off situation. But in the snapshot, this will happen in the second half of the year or the first half of next year. So this is something that is happening right now. We have already seen this in other situations, not as serious as this one, but We know that this is going to happen as it has to be considered in our provisions. Thank you.
This analysis and this pandemic, What about the impact? How are you affecting and dealing with that? We'll start with the new scenario directed by Lora, our Chief Economist, so that we could have changed which are the segments that will suffer the biggest impacts of the coronavirus. How long these sectors take to better recovery and trying to imagine how long the So new variables, new indicators were included in our credit models developed by our Department of Economics and based on what we are hearing from other sources and based on the experience that we've had in the past as well with things that happened. So the credit analysis money, people will be bought to borrow or try to borrow beyond the limits or the caps that we already serviced.
Because people have to guarantee a higher liquidity so that they maintain their payroll and their suppliers in order to resume a normal life after the crisis. It is very important for contracts to be complied with And everybody has to pay their obligations because if somebody does not pay, somebody will not be paid. And you created chaos in the economy as a whole should this happen. So with the amount of the credit analysis, we are considerably all these variables and therefore smaller in the past and now they are becoming more important In terms of credit assignment? Yes.
From Foti Capital. I would like to know that already has 20% In our network, Osabi has already given a trade group of contracts, to have a favorable product. This brings an amazing opportunity. Many clients were preapproved, but they didn't have the product yet. So we create our network in order to construct these sites so that the product may be on file so that we make bigger strides in this direction because it's important for the economy And for the people that will have their salaries guaranteed, so we are working very hard in order to use these pre approved data and extend the program, Well, it could be more expensive, as I believe that the government might want to extend this and So for a few months and this could lead to a full use of the line by the client.
Just adding this is an important line for the company to have a review. What we see is that Brazilian entrepreneurs, As I said at the beginning, they try to cover their needs without borrowing. So 20% of the lines already drawn on. And as we have made this available on mobile phones, etcetera, we have already told the client that the line is available, but a major part of clients will only resort to the line in May. And some other clients might even not use the line because they have some kind of reserve in order to cope with this movement of bigger difficulties.
Now regarding the large corporations, The company wanted to preserve their own cash, Good morning and thank you, Otavio. Exactly, Otavio. And I think you referred to that some large corporations have more liquidity and this is a prophylactic measure in their parts. And on the other hand, in commerce, well, they really need to expand their debts so that they may pay their suppliers. So the prepayments of suppliers depends on some extensions, and this is on characteristics that as of 1st January, it has higher investments because of the natural seasonality involved.
Companies have been taking risks during the period from March 20 April 10. In order to build a buffer of liquidity are the companies being successful in the court regarding the amounts that were lost by the banks. Thank you very much for the question. At Badescu, I have not seen any case whatsoever of a client asking us to release the receivables. I only saw one case, but it was not of our bank.
It was Another bank that goes with credit cards, but it was a one off, an isolated case. As I said before, the Chilean society has to be aware of the fact that they should not revoke a chaos due to opportunistic reasons I saw some big change in that they would no longer pay their rent. But I think this has to be rethought. I have been talking with many companies, and I don't believe that 99.99 percent of people do not want to do that and contribute to building chaos in the country. Somebody who does not pay means somebody will not be paid.
So you have to pay your suppliers, your employees, you have to pay your obligations. So you have to be extremely careful at a moment like this. If you have the money to pay, you must pay mandatory. You have to pay. You have to pay your obligations.
If the client Cannot pay the rent. We try to But overall, people have to be aware of the fact that they should not be opportunistic and try to take advantage of the situation. This would be evidence of a very bad character. Contracts have to be respected and law and also have to be respected and complied with so that we may emerge from this crisis more quickly and more effectively. Otherwise, we would really drag this into the future.
So Thank you for the question. Yes, we are waiting for our instructions regarding or from the Central Bank regarding And we have to understand the previous year, the target the liquidity of the bank is doing very well. It's a very good quality. The liquidity indicators are very high. And we will be analyzing this and we intend to have a spreadsheet for the next few days, but we are Thank you.
But the trend is to reach a slightly Higher cost than the current funding that institutions are selling out. No. How you see the scenario for 2020 2021. I tell you, thank you for the question. So we disclose once a month and the next one will be in 2 or 3 weeks.
And we will have an important update. Our current estimate was a drop of 1% to the GDP and it is lagging behind as wasabi had already said. We were thinking about minus 3, minus 4 today. And we have been tracking in our surveys, our proprietary surveys, the daily behavior of the economy And what we can say is that Brazil has a similar behavior as other countries for 2020. So the GDP should be around 3% to 4% negative for 2021.
We don't know how much debt will be left from the government and some companies to be safe in 2021. We are talking about the late 'twenty. But I'm more bullish about 2021. I believe that when the crisis is left behind, to accelerate our growth, especially with Congress and the government limit public expenditures for 2021 or during the Unfortunately, we do not have any time left for to answer any additional questions, and we will try to get in contact Thank you very much for your attention. This is Rosario speaking.
And I hope you have been able to clarify a few points to you, but the Investor Relations area will be available to you As usual and with the same degree of transparency and so that you may clarify any further debt that you might have and now We're working. Of course, you know that on 30th, we will have our conference call about our results. And please take care, please stay safe, and we wish you a very good week. And we hope we can overcome as quickly as possible this Thank you very much. Today's conference call has come to an end.
We thank you very much for participating and wish you a good day. Thank you.