Regulatory Alerts2021-04-21
Decree No. 2021-205 Setting the Minimum Capital and Nominal Value of Shares or Partnership Interests of Microfinance Institutions
The Government of Madagascar, via the Prime Minister, issued Decree No. 2021-205 to establish the minimum paid-up capital and nominal share values for microfinance institutions (MFIs). The decree mandates a minimum capital of two billion ariary for deposit and credit MFIs and five hundred million ariary for credit-only MFIs, while fixing nominal share values at twenty thousand ariary for joint-stock companies and five thousand ariary for cooperative-affiliated MFIs. It authorizes the CSBF to require higher capital based on prudential assessments, grants a two-year compliance window for existing or approved but inactive MFIs, and repeals conflicting prior regulations, entering into force immediately upon broadcast publication.
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