Regulatory Alerts2009-12-01
Instruction No. 005-DCR/09 of December 1, 2009 on the Mandatory Reserves System
The Governor of the Central Bank of Madagascar issued Instruction No. 005-DCR/09 to establish the mandatory reserves framework for credit institutions, specifying calculation bases, constitution periods, and applicable sanctions. Credit institutions must calculate reserves at a 15% coefficient on resident and non-resident demand, time, and savings deposits in Ariary and foreign currencies, submitting monthly declarations by the 10th day. The regulation mandates automatic penalty interest on reserve shortfalls at the repo rate plus 5 percentage points, applies to December 2009 on a transitional basis, and fully replaces the prior March 2005 instruction effective January 1, 2010.
Share