Regulatory Alerts2022-01-01
Instruction No. 2022-15/IMF on the Risk Central for Microfinance Institutions
The Central Bank of Djibouti issued Instruction No. 2022-15/IMF to mandate that all microfinance institutions consult the central risk registry and assess borrowers' overall indebtedness before approving any credit. The directive requires MFIs to report all loans exceeding 50,000 Djiboutian Francs to the registry, with bimonthly updates on debtor repayment histories and credit status due by the 10th of the subsequent month. The Central Bank reserves the authority to adjust the reporting threshold at any time, and the instruction takes effect immediately upon signature.
CENTRAL BANK OF DJIBOUTI
INSTRUCTION NO. 2022-15/IMF
ON THE RISK CENTRAL FOR MICROFINANCE INSTITUTIONS
The Governor of the Central Bank of Djibouti,
Having regard to Law No. 118/AN/11/6th L of January 22, 2011 amending the statutes of the Central Bank of Djibouti;
Having regard to Law No. 179/AN/07/5th L of May 16, 2007 regulating microfinance activities within the territory of the Republic of Djibouti;
Having regard to Law No. 117/AN/11/6th L of May 25, 2011 regulating financial cooperatives;
Having regard to the Commercial Code, Book 3 on Company Law;
Having regard to Law No. 119/AN/11/6th L of January 22, 2011 on the establishment and supervision of credit institutions and financial auxiliaries;
Having regard to Decree No. 2018-171/PRE of May 8, 2018 appointing the Governor of the Central Bank of Djibouti.
Orders:
Article 1: Every microfinance institution (MFI) must, before granting a loan, take into account the overall indebtedness status of the natural or legal person applying for the credit by consulting the Central Bank's Risk Central and requiring the borrower to provide all relevant information.
Article 2: Microfinance institutions shall be obligated to report to the Risk Central all credits exceeding 50,000 Djiboutian Francs. The Central Bank may modify this amount at any time.
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Article 3: Every MFI must report to the Risk Central the indebtedness status and repayment history of each of its debtors who meet the threshold set in the preceding article. This information must be communicated on a bimonthly basis and in both paper and electronic formats, with declarations due on the 10th of the following month.
Article 4: This instruction shall enter into force as of its signature.
Done in Djibouti, on March 14, 2022
The Governor