Regulatory Alerts2015-07-02
Circular Letter No. 11: Consumer Credit
The Bank of the Republic of Haiti issued Circular Letter No. 11 requiring all new consumer credit to be granted exclusively in gourdas starting July 6, 2015. This mandate aims to safeguard the stability of the banking system by mitigating risks associated with credit portfolio deterioration. Non-compliance with this directive subjects violators to penalties of up to 25% of the credit amount granted in violation of the rule.
Bank of the Republic of Haiti CIRCULAR LETTER No. 11
CIRCULAR LETTER TO BANKS
Pursuant to paragraphs 5 and 13 of Article 83 of the law of May 14, 2012, on banks and other financial institutions;
Considering the risks of deterioration of the credit portfolios of banking institutions and their subsidiaries;
Considering that it is the duty of the Bank of the Republic of Haiti to safeguard the stability and balance of the banking and financial system by adopting appropriate measures;
The Bank of the Republic of Haiti notifies all banking institutions and their subsidiaries that, effective July 6, 2015, and until further notice, all new consumer credit must be granted exclusively in gourdas.
Any violation of this circular letter shall be subject to a penalty of up to 25% of the credit granted in contravention of this provision.
The provisions of Circular 101-2 regarding the billing methods for transactions carried out using payment cards remain in force.
Port-au-Prince, July 1, 2015
(Signature) Charles Castel Governor
P.O. BOX 1570, Port-au-Prince, Haiti. Telephone: 2299-1244