Regulatory Alerts2024-10-01
On the Required Conditions for Granting Foreign Currency Loans and/or Guarantees Issued Under the December 28, 2023 Foreign Exchange Regulations
The Bank of the Republic of Burundi issued Circular No. 008/RC/2024 to define the conditions under which credit institutions may extend foreign currency loans and guarantees to residents and non-residents. The circular requires that these instruments finance domestic investments generating foreign currency revenues or reducing import-related outflows, while mandating borrowers to demonstrate repayment capacity and provide collateral covering at least 150% of the loan amount. Credit institutions must additionally manage exchange rate risks, ensure traceable disbursements in local accounts, and report all transactions to the Central Bank immediately upon execution.
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