Regulatory Alerts2024-01-22
BCEAO Advisory No. 002-01-2024 on the Accounting and Prudential Treatment of Exposures to Niger State Public Bonds
The Central Bank of West African States (BCEAO) temporarily permits credit institutions to classify their exposures to Niger State public bonds as performing loans, mandating that they be recorded in a dedicated account and exempted from contagion rules. Affected institutions must submit monthly updates on these exposures to the BCEAO and UMOA Banking Commission using an attached template by the 5th of each month. This measure ensures transparent monitoring and maintains prudential stability for West African banks holding Niger sovereign debt.
[Logo BCEAO]
ADVISORY NO. 002-01-2024 TO CREDIT INSTITUTIONS ON THE ACCOUNTING AND PRUDENTIAL TREATMENT OF EXPOSURES TO NIGER STATE PUBLIC BONDS
The Central Bank of West African States authorizes, on a temporary basis, credit institutions to maintain their exposures to Niger State public bonds within the category of performing loans. These exposures must be recorded in a specific account within the performing loans category. The contagion principle does not apply to these exposures.
The concerned credit institutions must report to the BCEAO and the UMOA Banking Commission information on the evolution of their exposures to Niger State public bonds, according to the template attached to this Advisory, no later than the 5th of each month.
Issued in Dakar on January 22, 2024
THE CENTRAL BANK OF WEST AFRICAN STATES
Avenue Abdoulaye FADIGA BP 3108 – Dakar – Sénégal Tél. (221) 33 839 05 00 / Fax (221) 33 823 93 35 courrier.bceao@bceao.int - www.bceao.int