Regulatory Alerts2020-09-18
Instruction No. 006-DOM/20 of September 18, 2020 on the establishment of an exceptional refinancing instrument to support the activities of Microfinance Institutions (MFIs)
The Central Bank of Madagascar issued Instruction No. 006-DOM/20 to establish an exceptional refinancing instrument supporting Microfinance Institutions (MFIs) amid the global health crisis. The directive mandates commercial banks to access fixed-rate liquidity injections at 2.50% with maturities up to three years, exclusively allocating these funds to approved MFIs. Beneficiary banks must submit monthly reports detailing MFI credit disbursements, maintain segregated accounting for the refinanced amounts, and are restricted from re-accessing the instrument until previously disbursed funds are fully utilized by the MFIs.
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