Regulatory Alerts2020-11-04
Instruction No. 008-DOM/20 of 04 November 2020 on the Establishment of an Exceptional Refinancing Instrument Dedicated to Gold Sector Operators
The Central Bank of Madagascar issued Instruction No. 008-DOM/20 to establish an exceptional refinancing instrument providing commercial banks with a fixed-rate credit line at 4.97% for maturities up to three years. This facility mandates that banks exclusively allocate the borrowed funds to finance licensed gold trading counters and small-scale gold operators, while requiring monthly reporting of credit disbursements to the central bank and the Banking Supervision Commission. Banks must pledge eligible Treasury securities as collateral, maintain segregated accounting for these funds, and cannot access further liquidity under this instrument until previously disbursed amounts are fully utilized.
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