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

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 National Assembly and the Senate have adopted, in their respective sessions dated December 21, 2005 and December 22, 2005, The President of the Republic, Having regard to the Constitution, Having regard to Decision No. 3-HCC/D3 of February 15, 2006 by the Constitutional Court, Enacts the law whose text follows: Article 1. - The provisions of Articles 16 and 86 of the amended Law No. 94-004 of June 10, 1994 on the Statutes of the Central Bank of Madagascar are amended and replaced by the following: Art. 16 (new) - Profits or losses resulting from the revaluation of the Central Bank's international assets or liabilities are accounted for in the income statement. Art. 86 (new) - Net revenue, after deduction of all expenses, depreciation, and provisions, constitutes profits. From these profits, the following are deducted: (i) fifteen percent to the legal reserve. This deduction ceases to be mandatory once the reserve reaches half of the capital; it resumes if this proportion is no longer met. (ii) fifty percent to the special foreign exchange reserve. This deduction ceases when the amount of this reserve reaches forty percent of the foreign exchange positions; it resumes if this proportion is no longer met. (iii) fifteen percent to the special reserve for expenses provided for in Articles 39, paragraph 2, 46, paragraph 1, and 47. The Board of Directors sets the ceiling for this reserve. After allocating contributions deemed necessary by the Board to all other reserves, general or special, the balance is paid to the Treasury. Reserves may be allocated to capital increases under the conditions provided in Article 4, paragraph 2. If the annual accounts close with a loss, only foreign exchange losses may be covered by charging against the special foreign exchange reserve. The remainder is recorded in the State budget for the following year. Art. 2. - The provisions of Article 87 are repealed. Art. 3. - Regulatory texts will, as necessary, establish the implementation procedures of this law. Art. 4. - This law shall be published in the Official Journal of the Republic. It shall be executed as a law of the State. Promulgated in Antananarivo, on February 20, 2006. Marc RAVALOMANANA