BCEAO Notice No. 011-10-2020 on Extending the Loan Payment Deferral Period for Credit Institutions Affected by COVID-19

CENTRAL BANK OF WEST AFRICAN STATES
The Governor
NOTICE No. 011-10-2020 ON THE EXTENSION OF THE LOAN PAYMENT DEFERRAL PERIOD FOR CREDIT INSTITUTIONS AFFECTED BY THE COVID-19 PANDEMIC

By Notice No. 005-04-2020 dated April 1, 2020, the Central Bank of West African States (BCEAO) invited credit institutions to grant enterprises and employees affected by the effects of the Covid-19 pandemic, upon request, a deferral period on their loans for a duration of 3 months renewable once, without interest charges, fees, or late penalties.

This loan payment deferral period is extended until December 31, 2020. Claims that remain affected by the effects of the Covid-19 pandemic may be maintained as healthy claims during this period and treated accordingly in their respective prudential categories. This preferential regulatory treatment will end on December 31, 2020.

The BCEAO regularly evaluates the impact of the pandemic and the measures adopted to address it on the financial and prudential situation of credit institutions. Complementary measures may be taken by the Central Bank on a case-by-case basis to support the banking sector while preserving the financial stability of the West African Monetary Union.

Loans granted by credit institutions to microfinance institutions are also eligible for an extension of the loan payment deferral period within the timeframes set forth in this Notice.

Done in Dakar, on October 14, 2020
Tiémoko Meyliet KONE
Avenue Abdoulaye FADIGA
BP 3108 - Dakar - Senegal
Tel. (221) 33 839 05 00 | Fax. (221) 33 823 93 35 courrier.bceao@bceao.int - www.bceao.int