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.
BANK OF THE REPUBLIC OF BURUNDI
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,
Having regard to the Law of 29/6/1962, providing for the maintenance in force of certain legislative and regulatory acts issued by the Supervisory Authority;
Having regard to Law No. 1/34 of December 02, 2008, establishing the Statutes of the Bank of the Republic of 5008, and an official document. The text is presented in French.
CHAPTER I: GENERAL PROVISIONS
Article 1: Scope of Application
This regulation applies to all the008, credit-lease contracts arising after its entry into force.
Article 2: Subject Matter of the Regulation
This regulation aims to specify the obligations of the contracting parties within the framework of credit-lease contracts, particularly regarding insurance, termination and exercise of the purchase option. In accordance with the provisions of Law No. 1/01 of January 05, 2016, amending Decree-Law No. 1/41 of July 09, 2025, defining credit-lease operations and applicable provisions to the contract of l’il, and regulating the conditions for exercising l’il, and regulating the conditions for exercising l’bail.