Regulatory Alerts2016-02-15
Circular dated February 15, 2016 amending the maximum cash deposit in foreign currency for export companies
The Governor of the Central Bank stated that, with respect to foreign-currency borrowing limits for businesses and their import requirements, two items are noted: Firstly, in terms of matching the size of borrowings with the import requests submitted by companies based on export revenues received by banks, and secondly, requiring foreign currency inflows by companies within a specified period of time that is not less than the value of their import expenses, which should decline compared to their export revenues. Should these conditions not be met by the bank, and if the client continues to default over an extended period, the Central Bank will designate the client as "defaulting," and all linked creditors must follow a clear process for managing this situation. This includes ensuring that all actions related to it are carried out before enforcing the order, making sure all referred operations are fully completed, and confirming complete implementation of the measures in question according to the stipulated date.