Regulatory Alerts2006-02-20
Law No. 2005-036 of February 20, 2006, repealing and amending certain provisions of the amended Law No. 94-004 of June 10, 1994, on the Statutes of the Central Bank of Madagascar
The President of Madagascar, acting on the National Assembly and Senate's December 2005 approvals, enacted Law No. 2005-036 to amend and repeal specific provisions of the Central Bank's governing statutes. The legislation mandates that foreign exchange revaluation gains or losses be recognized in the income statement and establishes precise allocation rates for the legal reserve (15%), special foreign exchange reserve (50%), and a designated expense reserve (15%). Furthermore, it repeals Article 87, sets capitalization and treasury payment rules for remaining profits, and authorizes regulatory bodies to define implementation details.
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