STANDARD RELATING TO LIQUIDITY MANAGEMENT FOR SAVINGS AND CREDIT COOPERATIVES (CEC)

Banque de la République d’Haïti (BRH) 2
STANDARD RELATING TO LIQUIDITY MANAGEMENT
FOR SAVINGS AND CREDIT COOPERATIVES (CEC)
Pursuant to Article 15 of the Law of June 26, 2002 on Savings and Credit Cooperatives, CECs must comply with the following provisions regarding liquidity management.

1. Definitions
   1.1. Liquidity
   Refers to the following elements:

• Cash;
• Immediate collection instruments;
• Demand deposits held with a second-tier structure (federation);
• Demand deposits held in local financial institutions;
  Demand deposit refers to bank balances free of any encumbrance.
  1.2. Composition of Deposit Liabilities
  Refers to the following elements received from members and users:
• Demand deposits;
• Blocked deposits;
• Specialized deposits;
• Time deposits;
• Other deposits

2. Liquidity Requirement
   All CECs are required to maintain, in the form of liquidity, an amount corresponding to at least 25% of deposits of all categories received from its members or users. In all cases, the cooperative must comply with the general liquidity standard according to the formula:
   Formula:
   2.1 Optimal Cash Reserves
   The optimal cash reserve level is that which satisfies the cooperative's liquidity needs at all times while minimizing unproductive balances. Cash reserves include the operational cash register, immediate collection instruments, and the reserve vault. Formula:
   ! "#!
   &D(()* !"#$%
   +),-).)%L(
   !"!
   &DEE)* !"#$%
   +,-D)EE.

Banque de la République d’Haïti (BRH) 3
2.2 Deposits in Financial Institutions
Checking accounts and savings deposits held in financial institutions and the federation allow for meeting certain significant fund outflows. Formula:
2.2.1 Time Deposits
Time deposits must be placed for short-term (12 months and more) and distributed over time according to the CEC's needs. Formula:
3 Semi-Annual Report on Liquidity Evolution
CECs must complete and submit to the BRH a report on liquidity evolution according to the table annexed to this circular. CECs are required to specify in the report the financial institutions in which the funds are placed. 4 Sanctions a) Reliability of Information At all times, the amounts declared in the report provided in the annex must be those appearing in the CEC's accounting and auxiliary books. Failure to comply with this directive may result in the BRH, following an inspection, applying an administrative sanction against the CEC in accordance with Articles 139 and 140 of the Law of June 26, 2002. b) Failure to Submit Report or Delay In the event of non-submission or delay in transmitting the semi-annual report on liquidity evolution, the BRH reserves the right to impose administrative sanctions against the CEC in accordance with Articles 139 and 140 of the Law of June 26, 2002. Administrative sanctions imposed by the BRH must be addressed during the CEC's annual general meeting, pursuant to Article 43, paragraph g, of the Law of June 26, 2002. 5 Entry into Force of This Circular The provisions of this circular enter into force on _______________________ ! "! &D(()* !"#$% !"#$% . +,- ! " ! &D(()* !"#$% !"#$% / +,-.,

Banque de la République d’Haïti (BRH) 4
This circular cancels and replaces the provisions contained in Circular No. 2 issued on October 24, 2003. Port-au-Prince, [Date] 2008 Charles CASTEL Governor

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ANNEX
NAME OF THE CEC:_________________________________________________ SITUATION AS OF:_____________________________________ FREQUENCY: SEMI-ANNUAL LIQUIDITY EVOLUTION Standards Calculated Ratios Variance General Liquidity Optimal Cash Reserves Bank Deposits Demand Deposits Time Deposits Explanation of Variances:
List of Financial Institutions:
President: ________________________________________ General Manager: _____________________________________ ! "#! &D(()* !"#$% +)(#,-).)/)%" !"! + + C'EE)* !"#$% 5')EE. +#",'%)+0 4**.% P ,.-+12,./.0% )//"!)'% -+**,. +,% " ! & #$% ! + &D(() !"#$% !"#$% ./2#%, ./01D+% !"#$% - "# +, ! " ! &D(()* !"#$% !"#$% . %+,-+