Circular No. 24/2019 on the Publication of Financial Information by Credit Institutions

BANQUE DE LA REPUBLIQUE DU BURUNDI LE GOUVERNEUR NOTE DE PRESENTATION OF CIRCULAR NO. 24/2019 ON THE PUBLICATION OF FINANCIAL INFORMATION BY CREDIT INSTITUTIONS, ISSUED PURSUANT TO LAW NO. 1/17 OF AUGUST 22, 2017 GOVERNING BANKING ACTIVITIES

Pursuant to Law No. 1/17 of August 22, 2017 governing banking activities, particularly Article 57, every credit institution must publish its financial information under the conditions, channels, and publication media determined by the Central Bank. Accordingly, the Banque de la République du Burundi issues Circular No. 24/2019 on the publication of financial information by credit institutions to provide details on the information that must be published, while specifying the media, channels, periodicity, and deadlines for such publication. The information to be published regarding the balance sheet, statement of comprehensive income, cash flow statement, statement of changes in equity, and solvency and leverage ratios must comply with the formats established by the Central Bank. Conversely, each credit institution is free to determine its format for publishing explanatory notes. Since the information included in the annexes is primarily intended for the public, upon publication, the line “annex … of Circular No. 24/2019” shall not appear in the report published for each of the annexes.

BANQUE DE LA REPUBLIQUE DU BURUNDI LE GOUVERNEUR CIRCULAR NO. 24/2019 ON THE PUBLICATION OF FINANCIAL INFORMATION BY CREDIT INSTITUTIONS, ISSUED PURSUANT TO LAW NO. 1/17 OF AUGUST 22, 2017 GOVERNING BANKING ACTIVITIES

Having regard to Law No. 1/34 of December 2, 2008 establishing the Statutes of the Banque de la République du Burundi, particularly Articles 7 (paragraphs 4 and 6) and 8; Having regard to Law No. 1/17 of August 22, 2017 governing banking activities, particularly Articles 49, 50, 55 (paragraph 2) and 57; Having regard to Circular No. 03/2018 on the solvency and leverage ratios of credit institutions; The Banque de la République du Burundi, hereinafter referred to as the “Central Bank”, hereby issues:

Article 1: Object The purpose of this circular is to provide details on the information that must be published by credit institutions, while specifying the media, channels, periodicity, and deadlines for their publication.

Article 2: Financial information to be published The financial information that must be published by credit institutions includes, inter alia, the financial statements prepared in compliance with International Financial Reporting Standards (IFRS) and the accounting plan for banks and financial institutions of Burundi, and must comprise at least:

1. the balance sheet;
2. the statement of comprehensive income;
3. the cash flow statement;
4. the statement of changes in equity;
5. the explanatory notes.

Article 3: Other publications Every credit institution is required to publish quarterly, in the Official Gazette of Burundi (BOB), Le Renouveau du Burundi Journal, and on its website, the core tier 1 capital adequacy ratio, basic capital adequacy ratio, total capital adequacy ratio, and leverage ratio. The Central Bank may require other publications, which may target a specific credit institution or the group to which it belongs. A credit institution may publish any other information it deems useful for informing the market.

Article 4: Correction of published information The Central Bank may require credit institutions to issue corrective publications when inaccuracies or omissions are identified in already published financial information. Any credit institution that voluntarily decides to correct previously published financial information must transmit to the Central Bank, two weeks prior to republication, a detailed list of the corrected information and the reason for the correction.

Article 5: Formats for publishing financial information Financial information must be published according to the formats set out in Annexes 1 to 5.

Article 6: Media and channels for publication Every credit institution is required to publish, on its website, the semi-annual financial information and that finalized at the end of the first and third quarters. In addition to the media and channel mentioned in the preceding paragraph, every credit institution is required to publish in the Official Gazette of Burundi, Le Renouveau du Burundi Journal, and on its website the financial information finalized at the end of the accounting year.

Article 7: Period for finalizing financial information to be published Every credit institution must publish financial information finalized during the following periods:

1. at the end of the first and third quarters: a) the balance sheet compared to that at the end of the previous accounting year; b) the statement of comprehensive income compared to that for the comparable period of the previous accounting year; c) the explanatory notes. These financial statements must be approved by the Board of Directors and duly signed by the General Management.

2. at the end of the first half-year and at the end of the accounting year: a) the balance sheet compared to that at the end of the previous accounting year; b) the statement of comprehensive income compared to that for the same period of the previous accounting year; c) the cash flow statement; d) the statement of changes in equity; e) the explanatory notes. These statements must be certified by the statutory auditor.

Article 8: Deadlines for publishing financial information Every credit institution must publish:

1. no later than one (1) month after the finalization date, the financial information for the end of the first and third quarters;
2. no later than two (2) months after the finalization date, the information for the first half-year;
3. no later than one (1) month after the holding of the Ordinary General Meeting of Shareholders, the financial information for the end of the accounting year.

Article 9: Sanctions Any credit institution that fails to comply with the provisions of this circular and/or deliberately publishes false information is subject to sanctions provided by legal and regulatory texts.

Article 10: Entry into force This circular enters into force on the day of its publication on the Central Bank’s website and in the Official Gazette of Burundi.

Done at Bujumbura, on 14/02/2019 Jean CIZA Governor.-(Signed)

ANNEX 1A TO CIRCULAR NO. 24/2019 NAME OF THE CREDIT INSTITUTION: DOCUMENT: BALANCE SHEET SECTION: ASSETS PERIOD: Amount in thousands of BIF Description | Reference number of explanatory note | PERIOD CONCERNED: | PREVIOUS YEAR-END PERIOD: Class 1: Cash accounts and operations with banks and similar institutions 10 - Cash in hand 11 - Banque de la République du Burundi 13 - Current accounts of banks and similar institutions 14 - Securities received under repurchase agreements, loans and other debtor accounts 16- Internal operations within the network with a central body 17 - Operations with headquarters, branches and foreign agencies 18 - Receivables (banks and similar institutions) 19 - Impaired claims net of allowances (banks and similar institutions) Class 2: Customer operations accounts 20 - Demand accounts and customer debtor accounts 21 - Working capital credits 22 - Equipment credits 23 - Consumer credits 24 - Mortgages 25 - Finance lease contracts 27 - Other customer operations 28 - Receivables (customers) 29 - Impaired claims net of allowances (customers) Class 3: Financial instruments and other accounts 30 – Net financial investments 32 - Other debtors 34 - Clearing accounts 36 - Net miscellaneous values and uses 37 - Income tax Class 4: Net immobilized securities accounts 40 - Net intangible fixed assets 41 - Net tangible fixed assets 42 - Net investment properties 46 - Net holding, subsidiary and similar investments TOTAL ASSETS

ANNEX 1B TO CIRCULAR NO. 24/2019 NAME OF THE CREDIT INSTITUTION: DOCUMENT: BALANCE SHEET SECTION: LIABILITIES PERIOD: Amount in thousands of BIF Description | Reference number of explanatory note | PERIOD CONCERNED: | PREVIOUS YEAR-END PERIOD: Class 1: Cash accounts and operations with banks and similar institutions 11 - Banque de la République du Burundi 13 - Current accounts of banks and similar institutions 15 - Securities given under repurchase agreements, borrowings and other creditor accounts 16- Internal operations within the network with a central body 17 - Operations with headquarters, branches and foreign agencies 18 - Payables (banks and similar institutions) Class 2: Customer operations accounts 20 - Demand accounts and customer creditor accounts 27 - Other customer operations 28 - Payables (customers) Class 3: Financial instruments and other accounts 30 – Financial investments 31 - Debt represented by a security 33 - Other creditors 34 - Clearing accounts 37 - Income tax Class 5: Provisions for risks and charges, equity and similar accounts 50 - Credit risk provisions recorded in liabilities 51- Provisions for risks and charges (excluding credit risk) 53 - Subsidies, public funds allocated and special guarantee funds 54 - Subordinated debt 56 - Latent or deferred gains or losses 57 - Capital premiums, reserves 58 - Share capital 59 - Net result of the year (negative sign in case of loss) TOTAL LIABILITIES

ANNEX 2 TO CIRCULAR NO. 24/2019 NAME OF THE CREDIT INSTITUTION: DOCUMENT: STATEMENT OF COMPREHENSIVE INCOME PERIOD: Amount in thousands of BIF Description | Reference number of explanatory note | PERIOD CONCERNED: | COMPARABLE PREVIOUS PERIOD: 70 - Income from operations with banks and similar institutions 71 - Income from operations with customers 72 - Income from operations on financial instruments 74 - Commissions on service provision 75 - Ancillary banking activity income 77 - Gains on credit risk 78 - Gains on immobilized assets 79 – Share of net result of equity-accounted enterprises A. Total Income Expenses 60 - Expenses from operations with banks and similar institutions 61 - Expenses from operations with customers 62 - Expenses from operations on financial instruments 64 - Commissions on service provision 65 - Ancillary banking activity expenses 66 - General administrative expenses 67 - Losses on credit risk 68 - Losses on immobilized assets 69 - Income taxes B. Total expenses C. NET RESULT (A-B) Other comprehensive income elements 81 - Latent or deferred gains or losses 85 - Reclassification adjustments 89 - Income taxes on other comprehensive income elements D. Total Other Comprehensive Income Elements E. TOTAL COMPREHENSIVE INCOME (C+D)

ANNEX 3 TO CIRCULAR NO. 24/2019 NAME OF THE CREDIT INSTITUTION: DOCUMENT: CASH FLOW STATEMENT PERIOD: Amount in thousands of BIF Description | Reference number of explanatory note | PERIOD CONCERNED: | COMPARABLE PREVIOUS PERIOD: Profit before taxes Net allocations for depreciation and impairment of tangible and intangible fixed assets Net allocations for impairment and provisions Share of result related to equity-accounted companies Net loss or net gain from investment activities Income or expenses from financing activities Other movements Non-monetary elements included in net profit before taxes and other adjustments Flows related to operations with banks and similar institutions Flows related to operations with customers Flows related to other operations affecting financial assets or liabilities Flows related to other operations affecting non-financial assets or liabilities -Taxes paid Net decrease or increase in operating activity assets and liabilities Total net cash flow generated by operating activities (A) Flows related to financial assets and participations Flows related to investment properties Flows related to tangible and intangible fixed assets Total Net Cash Flow Related to Investment Operations (B) Cash flows from or to shareholders Other net cash flows from financing activities Total Net Cash Flow Related to Financing Operations (C) Effect of exchange rate changes on cash and cash equivalents (D) Net increase or decrease in cash and cash equivalents (A + B + C + D) Cash and cash equivalents at the beginning of the period (E) Central bank cash, banks (assets and liabilities) Demand accounts and loans/borrowings with banks and similar institutions (assets and liabilities) Cash and cash equivalents at the end of the period (F) Central bank cash, banks, CCP (assets & liabilities) Demand accounts and loans/borrowings with banks and similar institutions (assets and liabilities) Net cash variation (G)= F-E

ANNEX 4 TO CIRCULAR NO. 24/2019 NAME OF THE CREDIT INSTITUTION: DOCUMENT: STATEMENT OF CHANGES IN EQUITY PERIOD: Amount in thousands of BIF Description | Reference number of explanatory note | Capital | Reserves related to capital | Consolidated reserves | Latent gains | Net result | Total 1 2 3 4 5 6 Equity at close of N-2 Changes in accounting methods or correction of errors Opening equity N-1 Allocation of result N-2 Dividends, balance sheet premiums, profit shares Capital increase Incorporation of reserves Net result for the year Sub-total: Transactions between shareholders Other comprehensive income elements: Latent gains or losses on available-for-sale assets Revaluation differences of fixed assets Fixed Assets Other Equity at close of N-1 Changes in accounting methods or correction of errors Opening equity N Allocation of result N-1 Dividends, balance sheet premiums, profit shares paid Capital increase Incorporation of reserves Other Net result for the year Sub-total: Transactions between shareholders Other comprehensive income elements: Latent gains or losses on available-for-sale assets Revaluation differences of fixed assets Other Equity at close of N

ANNEX 5 TO CIRCULAR NO. 24/2019 NAME OF THE CREDIT INSTITUTION: DOCUMENT: SOLVENCY AND LEVERAGE RATIOS PERIOD: Elements | Percentage Regulatory minimum standards | Regulatory minimum standards with 2.5% conservation buffer Core tier 1 capital adequacy ratio | 8.5% | 11.0% Basic capital adequacy ratio | 10.0% | 12.5% Total capital adequacy ratio | 12.0% | 14.5% Leverage ratio | 5.0% | 5.0%