Decision No. CM/UMOA/016/09/2014 Fixing the Remuneration Conditions for Regulated Savings Products in the West African Monetary Union (UMOA)

WEST AFRICAN MONETARY UNION
DECISION NO. CM/UMOA/016/09/2014 FIXING THE REMUNERATION CONDITIONS FOR REGULATED SAVINGS PRODUCTS IN THE WEST AFRICAN MONETARY UNION (UMOA) THE COUNCIL OF MINISTERS OF THE WEST AFRICAN MONETARY UNION (UMOA), Having regard to the Treaty of the West African Monetary Union (UMOA) dated 20 January 2007, particularly Articles 10, 11, 15, 17 and 34 thereof, Having regard to the Statutes of the Central Bank of West African States (BCEAO), annexed to the UMOA Treaty dated 20 January 2007, particularly Articles 42, 43, 60 and 66 thereof, Having regard to Decision No. CM/UMOA/008/06/2013 of 28 June 2013 defining regulated savings products, Having regard to Decision No. 397/12/2010 of 6 December 2010 by the Monetary Policy Committee setting out rules, instruments and procedures for implementing the monetary and credit policy of the BCEAO, amended and supplemented by Decision No. 24/2013/CPM/BCEAO of 9 December 2013, particularly Article 26 thereof, Having regard to the BCEAO note presented to the Council of Ministers during its ordinary session held in Lomé on 24 and 25 September 2014, regarding the fixing of remuneration conditions for regulated savings products in the UMOA, Having regard to the deliberations of the Council of Ministers during its ordinary session held in Lomé on 24 and 25 September 2014, HEREBY DECIDES:

Article 1: Subject Matter
This Decision aims to fix the remuneration conditions for regulated savings products offered by credit institutions, decentralized financial systems, financial services of the Administration or the Postal Office, and National Savings Banks in the member states of the West African Monetary Union.

Article 2: Remuneration Conditions for Regulated Savings Products
The remuneration conditions applicable to regulated savings products are determined for six-month periods, namely from January to June and July to December.

2
They are fixed as follows:
– term deposits and treasury bills with a maximum amount of ten (10) million CFA francs and a maturity of one year or less are remunerated at the highest value, rounded to the nearest quarter of a percentage point, between the previous month's average monthly money market rate reduced by 0.25 percentage points and the annual average inflation rate of the second-to-last month preceding said semester, increased by 0.25 percentage points; – savings accounts and passbooks are remunerated at a fixed rate of 3.5% up to the maximum amount of ten (10) million CFA francs; – savings plans and other contractual savings products are remunerated at a minimum rate of 3.5%.

Article 3: Communication of Remuneration Rates
The remuneration rates for regulated savings products are communicated by the Central Bank of West African States to the institutions referred to in Article 1 of this Decision on a semi-annual basis, respectively in January and July each year.

Article 4: Modification of Remuneration Rate Levels
In the event of specific circumstances related to the evolution of the economic, monetary and financial environment, the Council of Ministers may delegate authority to the Governor of the BCEAO to modify the remuneration rate levels for regulated savings products.

Article 5: Monitoring and Application
The Governor of the BCEAO is responsible for monitoring the implementation of this Decision.

Article 6: Final Provisions
This Decision repeals and replaces all prior provisions dealing with the same subject matter.
It enters into force on 1 January 2015 and shall be published where necessary.

Done at Lomé, on 24 September 2014
For the Council of Ministers of the West African Monetary Union, The President, Gilles BAILLET Minister of Finance of the Republic of Niger