Regulatory Alerts2026-02-16
Circular 87-1 Loan Classification
The Central Bank of Haiti issued Circular 87-1 to mandate standardized credit risk classification and provisioning requirements for all financial institutions operating in Haiti. The circular establishes a five-tier classification system for on-balance sheet receivables and off-balance sheet commitments based on overdue days and financial deterioration, while enforcing a contagion principle that downgrades all exposures to a counterparty or related group upon default. It further prescribes mandatory general and specific provisioning rates aligned with IFRS 9, defines eligible collateral deductions, and sets materiality thresholds to ensure prudent risk coverage and financial stability.
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