Regulatory Alerts2025-06-01
Regulation No. 01/2025 on Insurance Obligations, Termination Conditions and Exercise of the Purchase Option in Credit-Lease Contracts
The Bank of the Republic of Burundi issued Regulation No. 01/2025 to establish binding insurance obligations, termination conditions, and purchase option exercise procedures for all credit-lease contracts arising after its effective date. The regulation mandates contracting parties to adhere to defined insurance coverage and termination frameworks while clarifying the legal basis for exercising purchase options under amended statutory provisions. By aligning with the December 2008 Statutes and July 2025 Decree-Law, the instrument standardizes operational requirements and regulatory compliance for financial institutions managing credit-lease portfolios.
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