Regulatory Alerts2016-06-07
Circular 106-1 – Free Zone Credits
The Bank of the Republic of Haiti issued Circular 106-1 to exempt banks from mandatory reserve requirements on gourda-denominated loans used for financing authorized free zone infrastructure. The regulation permits the central bank to provide advances to banks at a maximum 3% interest rate, which must be lent to borrowers at a fixed rate not exceeding 7% for fifteen years. Banks are required to submit detailed quarterly reports on these credits and adhere to standard prudential norms, with non-compliance resulting in late transmission penalties.
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