Regulatory Alerts2025-03-24
Circular 130 – On Incentives for the Tourism Sector
The Bank of the Republic of Haiti (BRH) issued Circular 130 to provide financial incentives to Haiti's tourism sector by authorizing financial institutions to restructure existing loans, exempt qualifying tourism loans from mandatory reserve requirements, and access a preferential BRH refinancing window. The circular mandates specific provisioning rates of 10% for banks and leasing companies versus 15% for microfinance institutions, caps lending interest rates at 8.5% for banks and 10% for microfinance entities, and sets a ten-year implementation period for the refinancing facility with advance limits of up to $4 million for hospitality and $2 million for other sub-sectors. Compliance requires strict adherence to prudential standards, quarterly electronic reporting within 28 days of quarter-end, and subjects institutions to a 10% penalty for unexplained reporting discrepancies and late submission fees under Circular 110.