Regulatory Alerts2020-04-16
Instruction No. 002-DOM/20 on the Establishment of an Exceptional Refinancing Instrument to Support MPME Activities
The Central Bank of Madagascar (BFM) issued Instruction No. 002-DOM/20 to establish an exceptional refinancing line of credit for banks to support Micro, Small, and Medium Enterprises (MPMEs) amid the global health crisis. The instrument allows BFM to inject liquidity at a fixed rate of 5.47% with maturities up to three years, requiring banks to exclusively allocate these funds to MPMEs and report usage details. Banks are restricted from re-applying for this specific instrument until previously obtained funds are exhausted, with non-compliance resulting in the forfeiture of the loan term.
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