Regulatory Alerts2021-12-03
Instruction No. 005-DOM/2021 of December 3, 2021 implementing Law No. 2019-009 of January 22, 2020 governing repurchase operations
The Central Bank of Madagascar issued Instruction No. 005-DOM/2021 to implement Law No. 2019-009 governing repurchase operations on the financial market. The directive establishes eligible collateral securities, including negotiable debt securities, placement certificates, and treasury bills, while specifying haircut rates based on remaining maturity for monetary policy operations. It further mandates specific accounting treatments for transferors and transferees, delegates collateral selection and haircut determination for interbank bilateral trades to individual banks, and provides a standardized mathematical annex for calculating pledged security values.
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