Regulatory Alerts2019-09-06
Instruction No. 002/2019-CSBF on Distressed Loans of Microfinance Institutions
The Commission de Supervision Bancaire et Financière (CSBF) issued Instruction No. 002/2019-CSBF to establish mandatory rules for classifying, provisioning, and accounting for distressed loans within Microfinance Institutions (MFIs). The regulation defines specific criteria for downgrading credits to distressed status, including a contagion rule and strict provisioning percentages based on delinquency periods and restructuring status. It further mandates monthly risk portfolio reporting to the CSBF and allows for transitional compliance periods and derogations under specific conditions.
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