Bank of the Republic of Haiti

CIRCULAR No. 115-5

TO FINANCIAL INSTITUTIONS

In application of the provisions of Articles 83 and 161 of the Law of May 14, 2012, on banks and other financial institutions, the Decree of June 5, 2020, on microfinance institutions, and the Law of June 21, 2002, on savings and credit cooperatives, banks, development finance companies, leasing companies, credit card companies, hereinafter referred to as "credit financial institutions," approved microfinance companies, and savings and credit cooperatives are required to comply with the following provisions regarding loans granted to their clients.

1. Loan Moratorium

a.

Credit financial institutions may grant a moratorium to any debtor (business or individual) who wishes to benefit from it and meets the eligibility conditions below, for the period from April 1 to September 30, 2024.

Loans eligible for this moratorium are those of any category (commercial loan, consumer loan, housing loan) classified as Current or To Be Watched as of September 30, 2023, and which have become non-performing as of March 31, 2024, or have a high probability of becoming so thereafter, due to the socio-political troubles currently affecting the country.

b.

Approved microfinance companies, banks with microcredit divisions, and savings and credit cooperatives (SCCs) may grant their eligible clients who wish to benefit from it a moratorium for the period from April 1 to September 30, 2024.

Eligible clients are those whose loans (commercial, consumer, and others) were healthy as of September 30, 2023, and who are likely to become non-performing as of March 31, 2024, due to the socio-political troubles currently affecting the country.

During the moratorium period, only the payment of interest on claims is due, and the credit classification of beneficiary clients remains that recorded as of September 30, 2023.

The moratorium implies a temporal shift in the client's credit status between March 31, 2024, and September 30, 2024. Upon expiration of said moratorium, the client must resume normal monthly debt service (payment of principal and interest) while retaining the same credit classification as of the end of March 2024. In other words, the moratorium under this circular automatically results in an extension of the duration of the concerned loan, which may be up to six (6) months. A beneficiary wishing to maintain the initial duration of their credit may negotiate a restructuring with the concerned financial institution.

---

2. Restructuring and Provisioning

a.

By mutual agreement with its client, a credit financial institution may, in accordance with Circular No. 87 on loan classification and the establishment of provisions for doubtful debts, proceed to redefine the terms of a commercial loan that was healthy as of September 30, 2023, and has become non-performing as of March 31, 2024, or has a high probability of becoming so due to the socio-political troubles currently affecting the country. For a loan thus restructured, the financial institution is authorized, for a period of one (1) year, to apply a minimum provisioning rate of 5%. Credit financial institutions covered by this circular have until June 30, 2024, to carry out such restructurings.

If a company that benefited from the aforementioned moratorium records arrears in interest payments for three (3) consecutive months during the moratorium period, its loan will be automatically classified as non-performing, and the moratorium will become void. The financial institution may then, by mutual agreement with the concerned company, restructure said loan. For a loan thus restructured, the financial institution is authorized, for a period of one (1) year, to apply a minimum provisioning rate of 20%. Credit financial institutions covered by this circular have until September 30, 2024, to carry out such restructurings.

Loans restructured by credit financial institutions under this circular will be reported to the BRH in accordance with the provisions of Circular 87 (or its amended version, if applicable), with the notation "restructured loan Circ. 115-5" or "restructured loan Circ. 115-5/after moratorium," as applicable.

b.

Microfinance companies, bank microcredit divisions, and savings and credit cooperatives (SCCs) may, by mutual agreement with their clients, restructure loans that were healthy as of September 30, 2023, and have become non-performing as of March 31, 2024, or are likely to become so thereafter, due to the socio-political troubles currently affecting the country. For loans thus restructured, these institutions are authorized to apply, for a maximum period of six (6) months, a minimum provisioning rate of 25% in the case of an SCC, or a provisioning rate corresponding to 10% of the rate normally applied to restructured loans in the case of a microfinance company or a bank's microcredit division. Microfinance companies, bank microcredit divisions, and savings and credit cooperatives have until June 30, 2024, to carry out such restructurings.

If the loan of an eligible client who benefited from a moratorium from a microfinance company, a bank's microcredit division, or a savings and credit cooperative has experienced payment arrears on interest for two consecutive months during the moratorium period, it automatically becomes non-performing upon expiration of said moratorium. The microfinance company, bank microcredit division, or savings and credit cooperative may then choose to restructure this loan. For this loan thus restructured, the SCC is authorized to apply, for a maximum period of six (6) months, a minimum provisioning rate of 50%, and the microfinance company or

---

bank microcredit division is authorized to apply a minimum provisioning rate corresponding to 50% of the rate normally applied to restructured loans. Microfinance companies, bank microcredit divisions, and savings and credit cooperatives have until September 30, 2024, to carry out such restructurings.

3. Other Measures

During the moratorium period, beneficiaries are exempt from late fees.

In order to ensure the maintenance of the solvency of financial institutions in this context of socio-economic instability, the financial institutions covered by this circular are required to request non-objection from the BRH for any project of dividend distribution or interest on permanent shares for the 2023-2024 fiscal year.

4. Reports

All financial institutions covered by this circular are required to electronically transmit to the BRH, by June 30, 2024, and September 30, 2024, a report on loans that have benefited from a moratorium, no later than 21 days after the end of each of these quarters.

Furthermore, microfinance companies and SCCs must, with the same frequency, transmit to the BRH a report on loans that have been the subject of restructuring during the period permitted under this circular.

The format of the reports to be transmitted is attached to this circular.

5. Repeal and Entry into Force

This circular repeals Circular 115-4 of October 25, 2023, and enters into force on April 1, 2024.

Port-au-Prince, March 28, 2024.

Ronald Gabriel
Governor

---

ANNEX I

Quarterly Report on Clients Benefiting from Moratorium/Circular 115-5

Name of Financial Institution _________________________ Period from ___________ to ___________

Client Identification (Name of Individual or Company)	Moratorium Date (dd/mm/yyyy)	Loan Balance at Date of Moratorium Grant (in Gourdes)	Interest Payment: Current (C) or Non-Current (NC)
Client 1
Client 2
…………
…………

ANNEX II

Quarterly Report on Clients Benefiting from Restructuring/Circular 115-5

Name of Microfinance Company or SCC _________________________ Period from ___________ to ___________

Client Identification (Name of Individual or Company)	Restructuring Date (dd/mm/yyyy)	Loan Balance at Date of Restructuring (in Gourdes)	Type of Restructuring* (M, R)	Client Behavior After Restructuring (R, NR)
Client 1
Client 2
…………
…………

• M: Maturity extension; R: Reduction of principal or payable interest amount.
  R: Regular; NR: Irregular.