Regulatory Alerts2024-09-01
Circular No. 17/2018 on the Credit Ban for Defaulting Clients within the Banking Sector Issued Pursuant to Law No. 1/17 of August 22, 2017 Governing Banking Activities
The Bank of the Republic of Burundi issued Circular No. 17/2018 to protect the banking sector by prohibiting credit institutions from granting new financing, including signature loans, to clients in payment default of 180 days or more. The regulation mandates a centralized reporting system for defaulting clients, allows continued support through rescheduling or restructuring up to three times, and treats related persons as a single entity. It replaces the 2013 circular and takes effect upon publication on the Central Bank's website and in the Official Gazette.
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