Regulatory Alerts2019-05-13
Order No. 9777-2019 on the Conditions for Exercise and Supervision of Microfinance Operations under Article 2.3 of Law No. 2017-026 on Microfinance
The Malagasy Ministry of Economy and Finance issued Order No. 9777-2019 to establish the operational conditions and supervisory framework for microfinance entities operating under Law No. 2017-026. The Order mandates that private associations and NGOs conducting regular microcredit activities obtain prior authorization, adhere to strict loan caps (6 million Ariary individually and 24 million for groups), limit operations to short-term lending, and comply with comprehensive consumer protection, accounting, and reporting obligations. It further empowers the Ministry to conduct document-based and on-site inspections, impose administrative sanctions or withdrawal of authorization for non-compliance, and requires transitional compliance within twelve months for existing level-1 institutions.