Regulatory Alerts2007-05-30
Decree No. 2007-481 on the Increase of the Capital of the Central Bank of Madagascar
Issued by the President of Madagascar on May 30, 2007, Decree No. 2007-481 increases the Central Bank of Madagascar's capital from 200 million to 111 billion Ariary through a state subscription of negotiable debt securities. The decree replaces the previously planned reserve incorporation capital increase and establishes that applicable interest rates will follow market rates, with detailed terms to be defined in a Treasury-Central Bank agreement. The Minister of Finance and Budget and the Central Bank Governor are jointly tasked with executing the decree, which is published in the Official Journal of the Republic.
DECREE NO. 2007-481 on the Increase of the Capital of the Central Bank of Madagascar
THE PRESIDENT OF THE REPUBLIC, Having regard to the Constitution, Having regard to Law No. 94-044 of June 10, 1994, establishing the statutes of the Central Bank of Madagascar, as amended by Law No. 95-030 of February 22, 1996, as amended by Law No. 2003-004 of July 7, 2003, as amended by Law No. 2005-036 of February 20, 2006, Having regard to Decree No. 2005-832 of November 28, 2005, approving the annual accounts for the fiscal year 2004 and strengthening the own funds of the Central Bank, Having regard to Decree No. 2007-022 of January 20, 2007, appointing the Prime Minister, Head of Government, Having regard to Decree No. 2007-025 of January 25, 2007 and Decree No. 2007-120 of February 19, 2007, appointing the members of the Government, On the proposal of the Minister of Finance and Budget, In Council of Ministers:
DECREES:
Article 1: The capital of the Central Bank is increased from 200 million Ariary to 111 billion Ariary through a new allocation subscribed by the State in the form of negotiable debt securities.
Article 2: The rate applicable to the debt securities shall be the market interest rate. Other related terms and conditions shall be subject to an agreement between the Treasury and the Central Bank.
Article 3: The capital increase provided for in Article 1 is carried out instead of the reserve incorporation increase provided by Decree No. 2005-832 of November 28, 2005.
Article 4: Article 2 of Decree No. 2005-832 of November 28, 2005 is repealed.
Article 5: The Minister of Finance and Budget, and the Governor of the Central Bank are each responsible for executing this Decree within their respective areas, which shall be published in the Official Journal of the Republic.
Done in Mahajanga, on May 30, 2007.
For the PRESIDENT OF THE REPUBLIC OF MADAGASCAR, Marc Ravalomanana
For the Prime Minister, Head of Government Charles Rabemananjara
The Minister of Finance and Budget Benjamin Andriamparany Radavidson