Regulatory Alerts2022-01-01
Instruction No. 2022-08/IMF on the Granting of Loans by Microfinance Institutions
The Central Bank of Djibouti issued Instruction No. 2022-08/IMF to mandate that all microfinance institutions establish formal credit policies, standardized granting procedures, and robust risk assessment frameworks. The directive requires MFIs to conduct monthly portfolio quality reviews, explicitly document loan refinancings and consolidations in credit files, and retain all related records for a minimum of ten years. Furthermore, it standardizes the accounting treatment for non-performing loans, mandates off-book tracking after provisioning, and restricts provision account adjustments to risk-based reversals or increases.
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