Circular 01-GR/2024 on Application Modalities of Instruction 29/GR/2023 Partially Amending Instruction 01/GR/2018 Regarding Minimum Capital and Net Own Funds Calculation Rules for Credit Institutions

a:+%a)Ut &T:W XtEa)at RÉPUBLIQUE ISLAMIQUE DE MAURITANIE Le Gouverneur BANQUE CENTRALE DE MAURITANIE Nouakchott, on 04 JAN 2024

Circular No. 01-GR/2024 Setting forth application modalities of Instruction 29/GR/2023, partially amending Instruction 01/GR/2018 regarding minimum capital and net own funds calculation rules for credit institutions

The Governor of the Central Bank of Mauritania Having regard to Law No. 73.118 of May 30, 1973 establishing the Central Bank of Mauritania; Having regard to Law No. 2018-034 of August 8, 2018 on the statutes of the Central Bank of Mauritania; Having regard to Law No. 2018-036 bis of August 16, 2018 on the regulation of credit institutions; Having regard to Decree No. 041/2022 dated March 31, 2022 on the appointment of the Governor of the Central Bank of Mauritania; Having regard to Instruction No. 01/GR/2018 regarding minimum capital and net own funds calculation rules for credit institutions; Having regard to Instruction No. 29/GR/2023 partially amending Instruction No. 01/GR/2018; HAS DECIDED:

Article 1: Moratorium A six-month moratorium is granted to banks to comply with the new requirements of this circular. During this period, institutions are encouraged to develop a detailed internal schedule outlining specific steps to achieve compliance.

Article 2: Compliance Schedule Banks must comply with the following schedule to meet the minimum requirements for minimum capital and net tier 1 capital:

Deadline Date	Target to Reach
31 Dec 2024	1,500,000,000 MRU
31 Dec 2025	2,000,000,000 MRU
31 Dec 2026	2,500,000,000 MRU
31 Dec 2027	3,000,000,000 MRU

Article 3: Dividend Distribution Effective January 1, 2024, all banks are strictly prohibited from distributing dividends until the required minimum thresholds for capital and net tier 1 capital are fully met.

Article 4: Preparation of Individual Program Contracts Banks are required to prepare individual program contracts with the Central Bank of Mauritania to comply with the requirements set forth in this circular. These program contracts must be prepared on a case-by-case basis, taking into account each bank's specific characteristics and implementing necessary measures to ensure strict compliance with the provisions of this circular.

Article 5: Entry into Force This circular enters into force as of the date of its signature and repeals all prior contrary provisions.

[Signature Block] The Governor