Regulatory Alerts2019-06-26
Regulation (NAP) - Credit Risk Management for Microfinance Activities
The Central Bank of São Tomé and Príncipe issued this Permanent Application Norm to establish minimum credit risk management requirements for Microfinance Institutions, mandating strict classification, provisioning, and write-off rules for microcredits up to Db 30,000. The regulation defines related parties, exposure limits, maturity periods, and internal control mechanisms to prevent conflicts of interest and ensure portfolio sustainability. It further prescribes specific procedures for credit restructuring, guarantee handling, and sanctioning regimes to align microfinance operations with international best practices.
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