Instruction No. 2011-04 on Large Exposures

CENTRAL BANK OF DJIBOUTI

INSTRUCTION NO. 2011-04 ON LARGE EXPOSURES

The Governor of the Central Bank of Djibouti,

Having regard to Law No. 118/AN/11/6ème L of 22 January 2011 amending the statutes of the Central Bank of Djibouti;

Having regard to Law No. 119/AN/11/6ème L of 22 January 2011 concerning the establishment and supervision of credit institutions and financial auxiliaries;

Having regard to Decree No. 2011-010/PRE of 24 January 2011 appointing the Governor of the Central Bank of Djibouti.

Has issued the following:

Article 1: Cap on the amount of individual exposures relative to own funds

The credit institutions referred to in Article 3 of Law No. 119/AN/11/6ème L of 22 January 2011 mentioned above, hereinafter referred to as "subject institutions", shall ensure that:

• the total amount, in all currencies combined, of individual exposures of any nature incurred by themselves as a result of their transactions with the same beneficiary, or with a group of beneficiaries having direct or indirect financial links between them, does not exceed a cap set at 25% of their own funds;

• the aggregate total amount, in all currencies combined, of their significant individual exposures does not exceed 800% of their own funds. For the purposes of this instruction, significant individual exposures are exposures of any nature incurred by the subject institutions as a result of their transactions with the same beneficiary, or with a group of beneficiaries having direct or indirect financial links between them, and whose amount, calculated in accordance with Article 3 of this instruction, is equal to or greater than 10% of the subject institution's own funds.

Article 2: Calculation of own funds

The own funds that constitute the denominator of the ratio referred to in Article 1 of this instruction are defined by Instruction No. 2011-05 of the Governor of the Central Bank of Djibouti.

Article 3: Calculation of exposures

The exposures referred to in Article 1 of this instruction are taken into account in proportions defined by Article 3 of Instruction No. 2011-03 of the Governor of the Central Bank of Djibouti, which establishes the representation coefficients for on-balance sheet and off-balance sheet items regarding the solvency of credit institutions.

These exposures may be reduced by the amount of guarantees securing them, provided that these guarantees are granted by an eligible counterparty subject to the 0% or 20% coefficients referred to in Article 3 of Instruction No. 2011-03 of the Central Bank of Djibouti.

Article 4: Possibility of derogation granted by the Central Bank of Djibouti

The Central Bank of Djibouti may authorize an institution to temporarily derogate from the provisions of this instruction, and set a deadline for it to regularize its situation.

Article 5: Submission of the No. 2011-04 statement on significant individual exposures

1. Subject institutions are required to report quarterly the beneficiaries of facilities matching those defined in Article 1 of this instruction, at the end of March, June, September, and December, according to the standard model attached as an annex.

2. This statement shall be sent to the Central Bank of Djibouti no later than the 20th of the month following the reporting date. If that day is a public holiday, the statement must be transmitted no later than the first following business day.

3. The statement in the annex must be submitted both as a paper document, signed by one of the responsible executives of the credit institution, and as an Excel file sent via email, in accordance with the procedures set by the Central Bank of Djibouti circular regarding the production and transmission of accounting and prudential statements.

Article 7: Entry into force of the instruction

This instruction of the Central Bank of Djibouti shall take effect on its date of publication.

Article 8: Repeal of Instructions No. 5/BND/96 and 6/BND/96

Instructions No. 5/BND/96 and 6/BND/96 are hereby repealed.

Done in Djibouti, on 15 December 2011

The Governor

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CENTRAL BANK OF DJIBOUTI

INSTRUCTION NO. 2011-04 ON LARGE EXPOSURES

Name of Credit Institution: ....................................................................... Bank Code: ....................................................................... Reporting Date: .......................................................................

Submission Characteristics	Part to be completed by the institution	Part reserved for the Central Bank of Djibouti
Name of institution
Name of statement signatory
Signatory's position
Statement reporting date
Statement version number
• First version
• Corrected version
Statement signature date
Receipt date
Existence of file submission
Date and format of file submission	Email of

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CENTRAL BANK OF DJIBOUTI

INSTRUCTION NO. 2011-04 ON LARGE EXPOSURES

Name of Credit Institution: ....................................................................... Bank Code: ....................................................................... Reporting Date: .......................................................................

1- Table on large exposures

BENEFICIARIES OF FACILITIES	WEIGHTED FACILITY BRACKETS BY COEFFICIENT (a)	MAXIMUM (N.O.F.) x 25% '(6)	RATIO (b) OF COMMITMENT '(5) / (6)
>= 25% of N.O.F. AFTER WEIGHTING	100% (1)	50% (2)	20% (3)
TOTAL

(a) Ref: Instruction No. 2001-04 of the Governor of the Central Bank of Djibouti (b) Ratio = (Aggregate individual exposures >= 25% of Net Own Funds after weighting) < (Net Own Funds) X 25%

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CENTRAL BANK OF DJIBOUTI

INSTRUCTION NO. 2011-04 ON LARGE EXPOSURES

Name of Credit Institution: ....................................................................... Bank Code: ....................................................................... Reporting Date: .......................................................................

2- Table on significant individual exposures

BENEFICIARIES OF FACILITIES	WEIGHTED FACILITY BRACKETS BY COEFFICIENT (a)	MAXIMUM (N.O.F.) x 8 '(6)	RATIO (b) OF COMMITMENT '(5) / (6)
>= 10% of N.O.F. AFTER WEIGHTING	100% (1)	50% (2)	20% (3)
TOTAL

Only balances after guarantee and weighting > 10% of own funds are taken into account (a) Ref: Instruction No. 2011-04 of the Governor of the Central Bank of Djibouti (b) Ratio = (Individual exposures >= 10% of Net Own Funds) < (Net Own Funds) X 8