Regulatory Alerts2023-12-05
Directive No 3230/2023 on Accepted Collaterals and Their Management
The National Bank of Rwanda issues Directive No 3230/2023 to establish the framework for acceptable collaterals and their management when providing liquidity assistance to licensed financial institutions participating in the repo market. The directive specifies that government treasury bills, bonds, central bank instruments, sustainability-linked bonds, and listed corporate debt qualify as collateral, with valuation determined by weekly market prices or fair/net book values. It mandates a standardized haircut schedule ranging from zero to twenty percent based on credit ratings and maturity, while empowering the Central Bank to request revaluations and require additional collateral when market values decline.
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