Regulatory Alerts2026-05-05
Directive on Lending in Foreign Currency 2026
The National Bank of Rwanda mandates that licensed lending institutions obtain prior non-objection and satisfy strict eligibility criteria before granting loans denominated in foreign currency. Borrowers must demonstrate sufficient foreign currency income streams, maintain at least 120 percent cash flow coverage relative to annual repayments, and ensure adequate risk mitigation through appropriately valued collateral. The directive supersedes the 2018 framework, requires regular reporting and credit assessments, and empowers the regulator to restrict non-compliant institutions while enforcing penalties for violations.
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