Mandatory Reserves Regulations and Reserve Requirement Coefficients

BRH/CIR/ 96 # 78 TO COMMERCIAL BANKS, SAVINGS AND HOUSING BANKS With reference to Circular BRH/CIR/95 #72 of July 4, 1995 and that of September 20, 1995 BRH/CIR/95 #75, the BRH informs Commercial, Savings, and Housing Banks that Article 7 is amended as follows:

Article 7.- A- The measurement period for liabilities subject to reserve as well as the period for the constitution of coverage reserves are extended to one calendar month. However, in order to make them non-contemporaneous, a 15-day lag is inserted between the first and the second period to allow deficit banks to catch up at the end of the period. In other words, an average of Mandatory Reserves (ROM) will be established monthly from the 1st to the last day of the month, while the average of Effective Reserves (REM) will be established from the 16th of the same month to the 15th of the following month. The difference between the average of REM and that of ROM will indicate the bank's reserve position. (See model in annex)

B- Based on available data, potentially deficit positions will be communicated to banks on the first business day after the 7th of the following month. This does not relieve banks of their responsibility to anticipate their reserve position and take necessary measures to cover any deficits by the deadline of the 15th.

C- If this position remains deficit (REM<ROM) by the deadline, a penalty of 3% will be applied to the deficit amount and deducted from one of the bank's accounts held at the central bank.

These new provisions enter into force starting in April 1996.

April 19, 1996 Leslie Delatour Governor

No. 86-5C TO COMMERCIAL BANKS, TO SAVINGS AND HOUSING BANKS Starting from August 16, 1997, mandatory reserves on liabilities denominated in Foreign Currencies will be constituted as follows: • 100% in national currency.

August 13, 1997 Leslie Delatour

CIRCULAR No. 72-3 TO FINANCIAL INSTITUTIONS

1. This circular defines the application procedures for mandatory reserves to which commercial banks, savings and housing banks, and their non-bank subsidiaries are subject, in accordance with paragraph 5 of Circular No. 92 of April 9, 1998 regarding the consolidated supervision of bank operations.

2. Non-bank subsidiaries are considered to be companies that usually engage in one or more activities assimilable to banking operations.

3. The aforementioned financial institutions are required to constitute a minimum amount in the form of deposits at the Central Bank of Haiti and cash holdings in national currency, under the conditions defined below.

4. For commercial banks and savings and housing banks, the following are subject to mandatory reserve coverage: A- All balance sheet liabilities denominated in national currency and foreign currencies, with the exception of: • obligations towards financial institutions subject to the same Mandatory Reserve obligations; • obligations towards the Central Bank of Haiti; • obligations towards the FDI; • deferred revenues as defined in Circular # 93; • the counterpart of effects for immediate collection on site; • acceptances in circulation as defined in Circular # 93.

B- All national currency obligations representing the counterpart of foreign currency commitments recorded on the balance sheet.

5. For non-bank subsidiaries, all funds received from the public in the form of deposits, securities, certificates of deposit, and others denominated in gourdes and foreign currencies are subject to mandatory reserve coverage.

6. The mandatory reserve rates are fixed by the Central Bank of Haiti.

7. Banks will send the liquidity and coverage report to the Central Bank of Haiti every day according to the attached model and within the timeframe provided by the circular of March 2, 1992 (Ref.: BRH/CT/92 #43). Banks are prohibited from modifying this form without the express authorization of the Central Bank of Haiti.

8. The amounts declared in the liquidity and coverage reports must always be the same as those recorded in the accounting books of the Banks and their subsidiaries. Any discrepancy observed will be considered a false declaration, and the offending bank will be subject to a penalty of 10% of the amount of this difference, notwithstanding subsequent reserve regularizations and associated penalties. The penalty will be debited from one of the offending bank's accounts held at the Central Bank of Haiti.

9. Any bank that has recorded under other names operations subject to mandatory reserves according to this circular, with the aim of evading said reserves, will be subject to a penalty of 25% of the amount of the operations, notwithstanding the regularizations of the reserve calculation and associated penalties. This penalty will be deducted from the balance of one of the offending bank's accounts at the BRH.

10. This circular enters into force on September 16, 1998. It repeals Circular 72-2 of March 13, 1997 and Circular 72-2A of May 26, 1997. Circular No. 78 of April 19, 1996 remains and continues in force.

September 1, 1998 Fritz Jean Governor

CIRCULAR No. 86-8 TO COMMERCIAL BANKS TO SAVINGS AND HOUSING BANKS Starting from September 16, 1998, the mandatory reserve coefficients on liabilities denominated in national currency and foreign currencies defined by Circular #72-3 of September 1, 1998 are established as follows:

Liabilities in Gourdes | Liabilities in Foreign Currencies Commercial Banks | 26.50% | 12.50% Savings and Housing Banks | 15% | 12% Non-bank Subsidiaries | 26.50% | 12.50%

September 1, 1998 Fritz Jean Governor

Central Bank of Haiti CIRCULAR No. 85-10 TO COMMERCIAL BANKS TO SAVINGS AND HOUSING BANKS Starting from April 16, 2000, the mandatory reserve coefficients on liabilities denominated in national currency and foreign currency defined by Circular # 72-3 of September 1, 1998 are established as follows:

Liabilities in Gourdes | Liabilities in Foreign Currency Commercial Banks | 28% | 17% Savings and Housing Banks | 16.5% | 16% Non-bank Subsidiaries | 28% | 17%

March 27, 2000 Henry Cassion General Director

Central Bank of Haiti CIRCULAR No. 78-1 TO COMMERCIAL BANKS TO SAVINGS AND HOUSING BANKS With reference to Circulars BRH/CIR/72 of July 4, 1995, September 20, 1995 BRH/CIR/95 # 75, and April 19, 1996 BRH/CIR/96 #78, the BRH informs Commercial, Savings, and Housing Banks that Article 7 is amended as follows:

The calculation of penalties for insufficient reserves will be performed on a contemporaneous bi-monthly basis, i.e., from the 1st to the 15th, and from the 16th to the last day of the month, at a rate of 1.5%. This percentage will be applied to the reserve position established by making the difference between the average of Mandatory Reserves (ROM) and that of Effective Reserves (REM) for each period.

These provisions enter into force starting April 16, 2000.

March 27, 2000 Henry Cassion General Director

Central Bank of Haiti CIRCULAR NO. 86-12-A TO COMMERCIAL BANKS AND TO SAVINGS AND HOUSING BANKS Starting from June 16, 2001, the mandatory reserve coefficients on liabilities denominated in foreign currencies will be constituted as follows: • 30% in national currency • 70% in foreign currencies

June 5, 2001 Fritz Jean

Central Bank of Haiti CIRCULAR NO. 86-12 TO COMMERCIAL BANKS AND TO SAVINGS AND HOUSING BANKS Starting from June 16, 2001, the mandatory reserve coefficients on liabilities denominated in national currency and foreign currencies defined by Circular # 72-3 of September 1, 1998 are established as follows:

Liabilities in Gdes | Liabilities in Foreign Currencies Commercial Banks | 31% | 31% Savings and Housing Banks | 19.5% | 19.5% Non-bank Subsidiaries | 31% | 31%

June 5, 2001 Fritz Jean

P.O. Box 1570, Port-au-Prince, Haiti. Telephone: (509) 299-1243 / Fax: (509) 299-1095 Central Bank of Haiti The Governor CIRCULAR #86-12-C TO COMMERCIAL BANKS AND TO SAVINGS AND HOUSING BANKS Starting from March 1, 2006, mandatory reserves on liabilities denominated in foreign currencies will be constituted as follows: • 35% in national currency • 65% in foreign currencies

February 22, 2006 Raymond Magloire

CIRCULAR #86-12-E TO COMMERCIAL BANKS AND TO SAVINGS AND HOUSING BANKS Starting from May 1, 2006, mandatory reserves on liabilities denominated in foreign currencies will be constituted as follows: • 30% in national currency • 70% in foreign currencies

April 25, 2006 Raymond Magloire

P.O. Box 1570, Port-au-Prince, Haiti. Telephone: (509) 299-1243 / Fax: (509) 299-1095 Central Bank of Haiti The Governor CIRCULAR #86-12-G TO COMMERCIAL BANKS AND TO SAVINGS AND HOUSING BANKS Starting from October 16, 2007, the mandatory reserve coefficients on liabilities denominated in national currency and foreign currencies defined by Circular #72-3 of September 1, 1998 and the method of constitution of mandatory reserves on liabilities denominated in foreign currencies are established as follows:

Liabilities in Gourdes | Liabilities in Foreign Currencies

1. Mandatory Reserve Coefficients: Commercial Banks | 30% | 31% Savings and Housing Banks | 18.5% | 19.5% Non-bank Subsidiaries | 30% | 31%

2. Constitution of Mandatory Reserves on Foreign Currency Liabilities: • 27.5% in national currency • 72.5% in foreign currencies

October 11, 2007 Charles Castel

P.O. BOX 1570, Port-au-Prince, Haiti. Telephone: (509) 299-1243 . Fax: (509) 299-1095 Central Bank of Haiti The Governor CIRCULAR # 86-12-I To Commercial Banks And to Savings and Housing Banks Starting from June 16, 2008, the method of constitution of mandatory reserves on liabilities denominated in foreign currencies, defined by Circular # 86-5 of May 13, 1997, is established as follows:

• 37.50 % in national currency • 62.50 % in foreign currencies

Port-au-Prince, June 10, 2008 Charles Castel

P.O. Box 1570, Port-au-Prince, Haiti. Telephone: (509) 299-1243 / Fax: (509) 299-1095 Central Bank of Haiti Vice-Governor CIRCULAR # 86-12-J To Commercial Banks And to Savings and Housing Banks Starting from July 30, 2008, the method of constitution of mandatory reserves on liabilities denominated in foreign currencies, defined by Circular # 86-5 of May 13, 1997, is established as follows: • 30 % in national currency • 70% in foreign currencies

Port-au-Prince, July 25, 2008 Philippe W. Lahens

P.O. BOX 1570, Port-au-Prince, Haiti. Telephone: (509) 299-1243 / Fax: (509) 299-1095 CIRCULAR # 87 To Commercial Banks And to Savings and Housing Banks Starting from March 16, 2009, the mandatory reserve coefficients on liabilities denominated in national currency and foreign currencies defined by Circular # 72-3 of September 1, 1998 are established as follows:

Liabilities in Gourdes | Liabilities in Foreign Currencies Commercial Banks | 29% | 34% Savings and Housing Banks | 17.5% | 22.5% Non-bank Subsidiaries | 29% | 34%

March 9, 2009 Charles Castel

Central Bank of Haiti The Governor

P.O. BOX 1570, Port-au-Prince, Haiti. Telephone: (509) 2299-1243

CIRCULAR # 86-12-K To Commercial Banks And to Savings and Housing Banks Starting from January 1, 2012, the method of constitution of mandatory reserves on liabilities denominated in foreign currencies, defined by Circular # 86-5 of May 13, 1997, is established as follows: • 20% in national currency • 80% in foreign currencies

Port-au-Prince, December 21, 2011 Charles Castel Central Bank of Haiti The Governor

P.O. BOX 1570, Port-au-Prince, Haiti. Telephone: (509) 2299-1243

CIRCULAR # 86-12-L To Commercial Banks And to Savings and Housing Banks Starting from April 16, 2012, the method of constitution of mandatory reserves on liabilities denominated in foreign currencies, defined by Circular # 86-5 of May 13, 1997, is established according to the following schedule:

∗ From April 16 to May 15, 2012; • 10% in national currency • 90% in foreign currencies ∗ From May 16, 2012, unless otherwise provided by the BRH; • 0% in national currency • 100% in foreign currencies

Port-au-Prince, March 27, 2012 Charles Castel Central Bank of Haiti The Governor

P.O. BOX 1570, Port-au-Prince, Haiti. Telephone: (509) 2299-1243

CIRCULAR # 88-13-M To Commercial Banks And to Savings and Housing Banks Starting from February 1, 2013, the mandatory reserve coefficients on liabilities denominated in Gourdes and foreign currencies are established as follows:

Liabilities in Gourdes | Liabilities in Foreign Currencies Commercial Banks | 34% | 39% Savings and Housing Banks | 22.5% | 27.5% Non-bank Subsidiaries | 34% | 39%

Port-au-Prince, January 29, 2013 Charles Castel Central Bank of Haiti The Governor