Regulatory Alerts2024-09-01
Regulation No. 003/2019 on the Establishment and Management of Collateral Covering Loans to Credit Institutions
The Bank of the Republic of Burundi issues Regulation No. 003/2019 to establish and manage collateral covering loans granted to credit institutions, replacing the previous Instruction with a legally binding framework. The regulation relaxes quantitative and qualitative eligibility criteria for refinancing, reduces minimum evaluation scores from 75% to 65%, and lowers hairdons on promissory notes and listed securities from 30%/20% to 15%. It extends eligible collateral to include promissory notes drawn on financial companies and claims from nascent businesses, while mandating strict information disclosure, margin calls, and sanctions for non-compliance.
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