Circular 115-1 regarding financial institutions

Corner of Pavée and Quai Streets, Port-au-Prince, Haiti / Phones: (509) 22.99.10.69 22.99.10.71 Bank of the Republic of Haiti CIRCULAR 115-1 TO FINANCIAL INSTITUTIONS

In application of the provisions of Articles 83 and 161 of the law of May 14, 2012, concerning banks and other financial institutions, banks, development finance companies, and leasing companies, hereinafter referred to as "financial institutions," are required to comply with the following provisions relating to commercial, housing, and consumer loans.

1. Loan Moratorium

Financial institutions may grant, to any debtor in the system who wishes to benefit from it, a moratorium until:
a) September 30, 2020 for loans granted to individuals; b) December 31, 2020 for loans granted to businesses.

During this period, only the payment of interest on receivables will be due.

2. Restructuring and Provisioning

By mutual agreement with their clients, financial institutions may redefine the terms of a loan when the financial situation of these clients deteriorates. For a loan thus restructured, financial institutions are authorized, for a period of one (1) year:

• not to set up specific provisions on loans that were sound as of March 31, 2020;
• to set up specific provisions of 5% on all loans that were sound as of September 30, 2019, in accordance with Circular No. 87 on the classification of loans and the establishment of provisions for doubtful debts.

3. Other Measures

During the moratorium period, regardless of whether the client has opted for the moratorium or not, all receivables are exempt from late fees, excluding those on credit cards.

Furthermore, to consolidate the capital of financial institutions in the face of risks arising from this health crisis, the BRH prohibits any distribution of dividends for the 2019-2020 fiscal year.

Port-au-Prince, June 30, 2020
Jean Baden Dubois
Governor