Regulatory Alerts2015-09-07
05 Restructuring of Loans and Creation of Specific Provisions
The Bank of the Republic of Haiti issued Circular Letter No. 05 to authorize commercial and savings banks to redefine the terms of performing loans before January 12, 2010. Banks must establish a specific provision of 2% for any loans restructured under this authorization. The directive excludes non-performing loans or those restructured prior to the specified date and remains effective until further notice.
Bank of the Republic of Haiti
CIRCULAR LETTER # 05
CIRCULAR LETTER
TO COMMERCIAL BANKS AND TO SAVINGS AND HOUSING BANKS
Pursuant to paragraph 5 of Article 43 of the Decree of November 14, 1980, regulating the operation of banks and banking activities on the territory of the Republic of Haiti, banking establishments must comply with the provisions of this circular letter regarding the restructuring of loans and the creation of specific provisions related thereto.
Restructured Loans
Pending the establishment of guidelines regarding the procedures for loan restructuring, any banking establishment, by mutual agreement with its client, is authorized to redefine the terms of any performing loan before January 12, 2010. Loans thus restructured will be subject to a specific provision of 2%.
It is understood that non-performing loans or those that have been restructured before January 12, 2010, are not covered by this circular letter.
This decision is effective as of this date and extends until further notice.
Port-au-Prince, April 12, 2010
Signature: Charles Castel
P.O. Box 1570, Port-au-Prince, Haiti. Telephone: (509) 2299-1243 / Fax: (509) 2299-1095