Regulatory Alerts2020-05-28
Instruction No. 003-DOM/20 annulling and replacing the provisions of Instruction No. 002-DOM/20 of April 10, 2020 on the establishment of an exceptional refinancing instrument to support SME activities
The Central Bank of Madagascar issued Instruction No. 003-DOM/20 to establish an exceptional refinancing instrument at a fixed rate of 4.97% for commercial banks to channel liquidity toward approved Microfinance Institutions and enterprises with annual revenues not exceeding two billion Ariary. Banks are strictly required to exclusively allocate these funds to eligible beneficiaries, submit detailed collateral and credit disbursement reports using prescribed templates, and may not re-borrow under the same instrument until previously obtained funds are fully exhausted. This directive supersedes Instruction No. 002-DOM/20, aligns operational procedures with existing money market rules, and takes effect immediately upon signature.
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