2024-09-01
The Bank of the Republic of Burundi has issued Circular No. 02/2024 to establish a standardized tariff schedule for services provided to financing and guarantee institutions operating within the country. The circular defines these entities, mandates approval fees of 2 million and 10 million Burundian Francs respectively, and imposes an annual supervision charge of one percent of net profit with a 5 million Franc floor. Institutions must remit case analysis fees upon application submission, approval issuance fees upon notification, and annual supervision fees by January 31 each year into the Central Bank’s designated accounts.
Having regard to Law No. 1/34 of December 2, 2008 establishing the statutes of the Bank of the Republic of Burundi;
Having regard to Law No. 1/17 of August 22, 2017 governing banking activities;
Having regard to Law No. 1/07 of May 11, 2018 establishing the national payment system;
Having regard to Regulation No. 001/2024 of April 19, 2024 on entities conducting financing and/or guarantee operations in Burundi.
The Bank of the Republic of Burundi, hereinafter referred to as the "Central Bank", hereby issues:
This circular aims to specify the tariffs applied to each of the services provided by the Central Bank to financing and/or guarantee institutions.
For the purposes of this circular, the following terms are understood as:
Guarantee Institution: any institution whose purpose is to take, for valuable consideration and in the interest of a natural or legal person, a signed commitment such as an endorsement or guarantee for loans granted by credit institutions or microfinance institutions or any other entity authorized by the Central Bank to conduct credit operations;
Financing Institution: any institution whose purpose is the refinancing of loans granted by credit institutions and microfinance institutions or any other entity authorized by the Central Bank to conduct credit operations, to their clients, by mobilizing long-term resources on financial markets or with development partners.
The table below indicates the tariffs applicable to each of the services provided by the Central Bank to financing and/or guarantee institutions:
| DESCRIPTION | TARIFF (BIF) |
|---|---|
| Application for approval of a financing and/or guarantee institution. | 2,000,000 |
| Issuance of an approval certificate | 10,000,000 |
| Annual supervision fees | 1% of net profit with a minimum of 5,000,000 |
The case analysis fees related to the application for approval are paid into the Central Bank's account recorded in its books, and the corresponding payment receipt is attached to the submitted application file requesting approval.
The fees related to the issuance of an approval certificate are paid into the Central Bank's account recorded in its books upon notification of an approval agreement, and the corresponding payment receipt is submitted to the department handling the case.
The annual supervision fees are paid into the Central Bank's account recorded in its books no later than January 31 of each year, and the corresponding payment receipt is submitted to the department responsible for supervising financing and/or guarantee institutions.
This Circular enters into force on the day of its publication on the Central Bank's website and in the Official Gazette of Burundi.
Done in Bujumbura, on April 19, 2024
Edouard Normand BIGENDAKO
Governor