Regulatory Alerts2000-04-03
COBAC Regulation R-98/03 on Accounting and Provisioning of Non-Performing Loans and Doubtful Signature Commitments
The Central African Monetary Commission issued Regulation R-98/03 to standardize the accounting and provisioning frameworks for distressed claims, doubtful signature commitments, and irrecoverable loans across Central African credit institutions. The regulation defines classification criteria for immobilized, unpaid, and doubtful claims, mandates specific off-balance sheet tracking for interest and commissions, and establishes tiered provisioning schedules based on the presence of real guarantees or state backing. It further outlines reclassification rules, reporting obligations via standardized models, and disciplinary enforcement mechanisms for non-compliant institutions.
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