Circular No. 108: Agricultural Sector Credit

Bank of the Republic of Haiti CIRCULAR No. 108

TO BANKS

Pursuant to Article 83 of the law of May 14, 2012, on banks and other financial institutions, the Bank of the Republic of Haiti establishes the standards regarding the constituent elements of mandatory reserves that banks are required to maintain when granting agricultural credits.

1. Preferential Regime

With the aim of facilitating access to credit for agricultural and livestock enterprises, banking establishments are authorized not to constitute mandatory reserves on resources in gourdes used to finance the production activities of said enterprises.

These credits target:

• the exploitation of agricultural commodities in promising sectors (rice, bananas, market gardening crops, and others) as well as strategic export products (coffee, cocoa, mangoes, and others);
• the processing of agricultural products via industry;
• livestock farming (poultry, mammals, fish, and others) and the production of derived products (eggs, fur,...);
• The purchase of equipment, agricultural infrastructure, and others.

Once these credits are granted, they become an integral part of the banks' loan portfolios with all associated risks and, as such, must satisfy all requirements of the existing prudential standards, notably Circulaires 87 and 83-4.

2. Reports

The BRH obliges banks to submit to it at the end of each quarter, namely December 31, March 31, June 30, and September 30, a detailed report on the evolution of credit granted to agricultural and livestock enterprises.

The model for this report, which is attached to this circular, must be appended to the compliance reports related to Circular 83-4 concerning the concentration of credit risks.

P.O. Box 1570, Port-au-Prince, Haiti. Tel.: 299-1244, 299-1200. Fax: 299-1045, 299-1191

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3. Sanctions

In the event of non-compliance with section 2 of this circular, the bank incurs late penalties in accordance with the provisions of the circular dealing with late transmission of reports.

4. Entry into Force

This circular enters into force on June 15, 2016.

Jean Baden Dubois Governor

Appendix

Report on the Evolution of Credits to Agricultural and Livestock Enterprises

P.O. Box 1570, Port-au-Prince, Haiti. Tel.: 299-1244, 299-1200. Fax: 299-1045, 299-1191

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Appendix

REPORT ON THE EVOLUTION OF CREDITS TO AGRICULTURAL AND LIVESTOCK ENTERPRISES

Quarterly Report

Banking Establishment: __________________________ As of: __________________________

OUTSTANDING CREDITS TO AGRICULTURAL ENTERPRISES

CLIENTS	ACTIVITIES	MUNICIPALITIES	DEPARTMENT	INTEREST RATE	OUTSTANDING	% OF TOTAL CREDITS

OUTSTANDING CREDITS TO LIVESTOCK ENTERPRISES

CLIENTS	ACTIVITIES	MUNICIPALITIES	DEPARTMENT	INTEREST RATE	OUTSTANDING	% OF TOTAL CREDITS

P.O. Box 1570, Port-au-Prince, Haiti. Tel.: 299-1244, 299-1200. Fax: 299-1045, 299-1191

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Signature of two authorized executives: __________________________ __________________________

Position/Title: __________________________ __________________________

P.O. Box 1570, Port-au-Prince, Haiti. Tel.: 299-1244, 299-1200. Fax: 299-1045, 299-1191