Regulatory Alerts2020-01-01
Use of Telecommunication Licenses as Collateral
The Bank of Tanzania directs all banks and financial institutions to exclude telecommunication licenses from loan collateral, citing Sections 24(1) and 73 of the Electronic and Postal Communications Act, 2010. These provisions restrict the transferability of Tanzania Communications Regulatory Authority licenses, rendering them ineligible for lending security. Financial institutions must therefore adjust their credit risk assessments and collateral acceptance policies accordingly.
BENKI KUU YA TANZANIA 2 MIRAMBO STREET 11884 DAR ES SALAAM TANZANIA Simu ya Mdomo: +255-22- 2235529/2234494/95/97 Anuani ya Simu: “BENKUU” Kumbukumbu Ref. No. BANK OF TANZANIA 2 MIRAMBO STREET 11884 DAR ES SALAAM TANZANIA Phone: +255-22- 2235529/2234494/95/97 Fax: 2234189 CABLE: “BENKUU” FA.628/170/01/6 4th March 2020 To: All Banks and Financial Institutions RE: USE OF TELECOMMUNICATION LICENSES AS COLLATERAL Reference is made to the captioned subject. The Bank of Tanzania wishes to bring to your attention the requirements of Section 24(1) and 73 of the Electronic and Postal Communications Act, 2010 which restricts and prohibits transfer of licenses issued by the Tanzania Communications Regulatory Authority (TCRA). Accordingly, such licenses cannot and should not be taken as collaterals for the purpose of lending. Please be advised accordingly. Yours faithfully, BANK OF TANZANIA DIRECTORATE OF FINANCIAL SECTOR SUPERVISION