Regulatory Alerts2019-05-31
Circular on Time Deposits Exempt from Mandatory Reserves
The Bank of the Republic of Haiti issued Circular BRH/DCC/CIRC # 02-19 to incentivize commercial banks to offer attractive Gourden-denominated financial products to the public. The regulation exempts time deposits from mandatory reserve requirements if their base interest rate is at least 7% per annum plus any positive variation in the Average Acquisition Rate (TMA) during the certificate's holding period. This circular officially repeals and replaces the previous directive dated December 15, 2015.
Ref.: BRH/DCC/CIRC # 02-19
CIRCULAR TO COMMERCIAL BANKS
Considering the need to facilitate the public offering of attractive financial products in Gourdes; Considering that the BRH wants to provide incentives to commercial banks to offer similar products;
The Bank of the Republic of Haiti informs that, effective with this circular, time deposits in Gourdes bearing a base interest rate greater than or equal to 7% per year increased by the positive variation of the TMA (Average Acquisition Rate) from the beginning to the end of the holding period of the deposit certificate are exempt from mandatory reserves.
This circular repeals and replaces that of December 15, 2015 (CIRC-RES # 95).
Port-au-Prince, May 29, 2019. Jean Baden Dubois Governor