Circular 115: Moratorium on Loans and Other

CIRCULAR No. 115 TO FINANCIAL INSTITUTIONS

In application of the provisions of Articles 83 and 161 of the Law of May 14, 2012, concerning banks and other financial institutions, banks, development finance companies, credit card companies, and leasing companies, hereinafter referred to as "financial institutions," are required to comply with the following provisions relating to commercial, housing, and consumer loans.

1. Three (3) Month Moratorium on All Loans

Financial institutions are required to grant a three (3) month moratorium, from April 1 to June 30, 2020, to any debtor in the system who wishes to benefit from it. During this period, only the payment of interest on debts will be due.

2. Restructuring and Provisioning

By mutual agreement with their clients, financial institutions may redefine the terms of a loan when the financial situation of these clients deteriorates. For a loan thus restructured, financial institutions are authorized, for a period of one (1) year:

• not to set up specific provisions on loans that were healthy as of March 31, 2020;
• to set up specific provisions of 5% on all loans that were healthy as of September 30, 2019, in accordance with Circular No. 87 on the classification of loans and the establishment of provisions for doubtful debts.

3. Other Measures

During the moratorium period:

• all debts are exempt from late fees, including those on credit cards;
• the realization of collateral on mortgage loans is suspended;
• the transmission of data to the Credit Information Bureau (BIC) is suspended for the months of March, April, May, and June 2020.

Port-au-Prince, March 19, 2020

Jean Baden Dubois Governor