Regulatory Alerts2022-01-01
Classification of Credits According to Their Duration
The Central Bank of Djibouti issued Instruction No. 2022-07/IMF to mandate a standardized classification of sound credits based on their initial repayment duration. The regulation defines short-term credits as member loans with an initial term, including any grace period, not exceeding twelve months, and medium-term credits as those exceeding twelve months but not surpassing thirty-six months. Long-term credits are classified as any member loans with an initial repayment period extending beyond thirty-six months.
CENTRAL BANK OF DJIBOUTI
INSTRUCTION NO. 2022-07/IMF ON THE CLASSIFICATION OF CREDITS ACCORDING TO THEIR DURATION
The Governor of the Central Bank of Djibouti,
Having regard to Law No. 118/AN/11/6th L of January 22, 2011, amending the statutes of the Central Bank of Djibouti;
Having regard to Law No. 179/AN/07/5th L of May 16, 2007, regulating microfinance activities within the territory of the Republic of Djibouti;
Having regard to Law No. 117/AN/11/6th L of May 25, 2011, regulating financial cooperatives;
Having regard to the Commercial Code, Book 3 on Company Law;
Having regard to Law No. 119/AN/11/6th L of January 22, 2011, on the establishment and supervision of credit institutions and financial auxiliaries;
Having regard to Decree No. 2018-171/PRE of May 8, 2018, appointing the Governor of the Central Bank of Djibouti.
Orders:
Article 1: Sound credits are classified according to their initial repayment term into short-term, medium-term, and long-term credits.
Article 2: Short-term credits are considered to be loans to members whose initial repayment term, including any applicable grace period, does not exceed twelve months.
Article 3: Medium-term credits are considered to be loans to members whose initial repayment term, including any applicable grace period, exceeds twelve months but is less than or equal to 36 months.
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Article 4: Long-term credits are considered to be loans to members whose initial repayment term, including any applicable grace period, exceeds 36 months.
Done in Djibouti, on March 14, 2022
The Governor
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