Regulatory Alerts2022-01-01
On the Establishment of a Legal Reserve
Issued by the Central Bank of Djibouti via Instruction No. 2022-16/IMF, this directive mandates all microfinance institutions to establish a legal reserve funded by a mandatory 15% annual levy on net surpluses after offsetting any carried-forward deficits, irrespective of the reserve's cumulative balance relative to share capital. The reserve may only be utilized to cover losses once all other available reserves have been fully exhausted, and its creation does not preclude the maintenance of statutory or voluntary reserves. This instruction enters into force immediately upon its signature.
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