Obligation for MFIs to Produce and Transmit Financial Statements to the Central Bank of Djibouti

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BANQUE CENTRALE DE DJIBOUTI

INSTRUCTION No. 2022-05/IMF

REGARDING THE OBLIGATION FOR MFIS TO PRODUCE FINANCIAL STATEMENTS AND TRANSMIT THEM TO THE CENTRAL BANK OF DJIBOUTI

The Governor of the Central Bank of Djibouti,

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

Having regard to Law No. 179/AN/07/5th L of 16 May 2007 regulating microfinance activities on the territory of the Republic of Djibouti;

Having regard to Law No. 117/AN/11/6th L of 25 May 2011 regulating financial cooperatives;

Having regard to the Commercial Code, Book 3 on Company Law;

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

Having regard to Decree No. 2018-171/PRE of 08 May 2018 appointing the Governor of the Central Bank of Djibouti.

Orders:

Article 1: This Instruction applies to all MFIs regardless of their legal form.

Article 2: Microfinance institutions are required to present their financial statements according to the templates of the MFI accounting framework for the Republic of Djibouti, as established by Instruction No. 2021-06 of the Central Bank of Djibouti.

Article 3: Financial statements comprise the following documents:

• The Balance Sheet and Off-Balance Sheet;
• The Income Statement;
• The Statement of Net Worth;
• The Statement of Profit or Loss Formation;
• The Supplementary Notes.

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Article 4: Financial statements are finalized on 31 December of each year and transmitted to the Central Bank of Djibouti no later than 30 June of the following year.

Any delay in transmission will result in the payment of late fees of 5,000 Djiboutian Francs per working day of delay or infraction, which shall be paid to the Central Bank of Djibouti.

Article 5: For institutions organized in a network, the umbrella structure is obligated to submit to the Central Bank the consolidated annual financial statements of the network.

For those with autonomous branches, the headquarters is obligated to submit to the Central Bank the consolidated annual financial statements.

Article 6: The institutions referred to in Article 1 of this Instruction are required to structure their accounting to prepare the required financial statements.

They must implement separate accounting to present financial statements related to their microfinance activities separately from their other activities.

Article 7: Financial statements must be signed by a duly authorized person to bind the institution's liability and certified by a statutory auditor, in the case of financial cooperatives and MFIs established as companies.

Article 8: This Instruction enters into force from the date of its signature.

Done in Djibouti, on 14 March 2022

The Governor

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