Directive on Lending in Foreign Currency 2026

The Governor DIRECTIVE N o 46/2026 OF 08/04/2026 ON LENDING IN FOREIGN CURRENCY

Page 1 of 4 The National Bank of Rwanda; Pursuant to Law nº 48/2017 of 23/09/2017 Governing the National Bank of Rwanda as amended to date, especially in Articles 6, 6 bis, 8, 9, and 42; Pursuant to Regulation nº 42/2022 of 13/04/2022 governing foreign exchange operations as amended to date; Having reviewed the Directive n o 2500/2018–09 of 27/12/2018 on lending in foreign currency; ISSUES THE FOLLOWING DIRECTIVE: Article One: Purpose of this Directive This Directive establishes the conditions for the granting of loans in foreign currency by lending institutions licensed by the Central Bank. Article 2: Interpretation In this Directive: (a) “Central Bank” means the National Bank of Rwanda; (b) “foreign currency” means – (i) banknote, coin, or electronic unit of payment denominated in a currency other than the Rwandan Franc, which is legal tender outside of Rwanda; and (ii) financial instruments denominated in foreign currency. (c) “lending institution” means any entity duly licensed by the Central Bank to operate as a bank or a deposit-taking microfinance institution, as defined in the applicable laws; (d) “lending in foreign currency” means the granting of a loan denominated in, or repayable in, a foreign currency, including any facility under which the principal or interest is payable in such currency.. Article 3: Scope of application This Directive applies to a lending institution. Article 4: Conditions for granting loans in foreign currency (1) A lending institution may grant a loan in foreign currency, if –

(a) the borrower is an individual earning in foreign currency or a legal entity authorized to transact in foreign currency; (b) the borrower’s income stream in foreign currency is derived from lawful businesses permitted to generate foreign currency as per relevant legal instruments; (c) the net cash flow generated in foreign currency is sufficient to service the loan over the loan tenure and is at least 120% of the total annual repayment amount including principal and interests, or total repayment instalments for loans with a maturity of less than one year; (d) the repayment will be in the currency in which the loan is denominated until the maturity of the loan; (e) the foreign exchange risk is mitigated; (f) the collaterals pledged by non-residents can be easily accessible and realized and are at least 120% of the total loan amount. Where the collateral consists of cash or a guarantee denominated in the same foreign currency as the loan, the minimum required collateral value shall be 100% of the total loan amount; (g) it complies with applicable prudential rules on related party transactions, credit concentration, and large exposure limits. (2) A lending institution conducts and maintains a credit assessment of the borrower and periodically reassesses the borrower’s capacity to service the loan in foreign currency in accordance with its internal risk management policies and applicable regulations. Article 5: Prior non-objection for granting loans in foreign currency (1) A lending institution obtains prior non-objection from the Central Bank before extending credit in foreign currency, subject to the following conditions: (a) for deposit-taking microfinance institutions, prior non-objection is required before granting any loan in foreign currency. (b) for banks, prior non-objection is required for any proposed on-balance sheet foreign currency lending that exceeds 20% of a bank’s core capital. (2) The application for non-objection to the Central Bank is accompanied by the following: (a) An outline of key transaction details, including a description of the borrower, the amount, currency, purpose, and tenor, together with a summary of the risk assessment covering the borrower’s eligibility and repayment capacity, the loan terms and conditions, associated risk mitigation measures, the adequacy of security, and compliance with internal policies.

(b) Any other information that Central Bank may deem necessary. (3) The Central Bank provides the non-objection within ten working days from the date of reception of a complete application. Article 6: Restriction on foreign currency lending The Central Bank may restrict any lending institution from granting loans in foreign currency if it fails to adequately mitigate the associated risks. Article 7: Reporting requirement A lending institution is required to report regularly to the Central Bank on the loans granted in foreign currency in accordance with the reporting requirements prescribed by the Central Bank. Article 8: Enforcement mechanisms Any violation of this Directive results in regulatory penalties in accordance with applicable laws and regulations. Article 9: Repealing provision This Directive repeals Directive No. 2500/2018-09 of 27/12/2018 on lending in foreign currency. Article 10: Entry into force This Directive enters into force on the date of its signature. Done at Kigali, May 4, 2026 Soraya M. HAKUZIYAREMYE Governor