Regulatory Alerts2019-01-01
Instruction No. 2019-03 on the Classification of Loans and Provisioning of Non-Performing Loans
The Central Bank of Djibouti issued Instruction No. 2019-03 to mandate the classification of credit exposures into healthy, sensitive, and non-performing categories, with specific provisioning requirements for each tier. The regulation establishes strict rules for identifying non-performing loans based on payment irregularities, contagion effects, and restructuring, while defining precise calculation methods for specific provisions and collateral valuation. Furthermore, it imposes quarterly reporting obligations on credit institutions and grants the Central Bank authority to demand additional provisions or reclassifications to ensure financial stability.
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