Regulatory Alerts2015-09-07
Circular No. 04: General Provision on Loan Portfolio
The Bank of the Republic of Haiti issued Circular No. 04 to mandate that commercial and savings banks establish a quarterly general provision of 1.25% for doubtful claims on loans lacking specific provisions, effective March 16, 2009. This directive explicitly abrogates point 3 of Circular 87 regarding the general provision requirement. The regulation applies to all banking establishments operating within the territory of the Republic of Haiti.
BRH Banque de la République d’Haïti
CIRCULAR # 04
LETTER-CIRCULAR TO COMMERCIAL BANKS AND SAVINGS AND HOUSING BANKS
Pursuant to paragraph 5 of Article 43 of the Decree of November 14, 1980, regulating the operation of banks and banking activities on the territory of the Republic of Haiti, banking establishments must comply with the provisions of this letter-circular regarding Circular 87 on the establishment of a general provision on the loan portfolio.
General Provision
Effective March 16, 2009, every banking establishment must quarterly establish a general provision for doubtful claims of 1.25% regarding loans that are not subject to any specific provision.
This provision abrogates point 3 of Circular 87 solely concerning the general provision.
Port-au-Prince, March 13, 2009
(Signature) Charles Castel
P.O. Box 1570, Port-au-Prince, Haiti. Telephone: (509) 299-1243 / Fax: (509) 299-1095