Instruction 10_GR_2012 on the Equilibrium Ratio Between Net Equity and Fixed Assets

ISLAMIC REPUBLIC OF MAURITANIA
CENTRAL BANK OF MAURITANIA
HONOUR-BROTHERHOOD-JUSTICE
01 APR 2012
Instruction No. 10_GR_2012
ON THE EQUILIBRIUM RATIO BETWEEN NET EQUITY AND FIXED ASSETS

The Governor of the Central Bank of Mauritania:
having regard to Law No. 73.118 of May 30, 1973 establishing the Central Bank of Mauritania having regard to Ordinance No. 004/2007 of January 12, 2007 on the Statute of the Central Bank of Mauritania having regard to Ordinance No. 020/2007 of March 13, 2007 on credit institutions, repealing and replacing Law No. 95.11 of July 17, 1995 having regard to Decree No. 102/2009 of August 13, 2009 appointing the Governor of the Central Bank of Mauritania Decides:

Article 1: Pursuant to Articles 26 and 27 of Ordinance No. 020-2007 of March 13, 2007, this instruction establishes an equilibrium ratio between net equity and fixed assets.
Article 2: Credit institutions must maintain at all times a minimum ratio of 100% between net equity, as defined in Article 3, and fixed assets, as defined in Article 4 of this instruction. An exemption from compliance with this ratio may be requested from the Governor of the Central Bank of Mauritania:

• by credit institutions conducting substantial venture capital or equity investment operations;
• to exclude from the denominator calculation defined in Article 4, properties acquired through collateral realization during their first two years of ownership.
  Article 3: The net equity retained in the numerator of the ratio is defined by the instruction establishing minimum capital and rules for calculating net equity.
  Article 4: The fixed assets retained in the denominator of the ratio include the following elements:
• net fixed tangible assets (net intangible fixed assets are deducted in the calculation of net equity),
• net equity stakes (excluding net equity stakes in credit institutions, which are deducted in the calculation of net equity),
• doubtful and disputed receivables net of allocated provisions.

1
Article 5: Failure to comply with the minimum ratio set by this instruction exposes credit institutions to disciplinary sanctions provided for in Ordinance No. 020-2007 and Instruction No. 18/GR/2008.
Article 6: The calculation form included in the annex forms an integral part of this instruction.
Article 7: These provisions take effect upon signature, subject to the transitional provisions set out in Article 8 below.
Article 8: A two-year grace period is granted to credit institutions unable to comply with the provisions of Article 2 of this instruction.

2
Annex to the Instruction
CALCULATION OF THE EQUILIBRIUM RATIO BETWEEN NET EQUITY AND FIXED ASSETS In thousands of Ouguiyas Name of the credit institution: RCM Code
I. NET EQUITY

• Net equity
  NET EQUITY RETAINED (A)
  II. FIXED ASSETS
• Equity stakes and subsidiary shares (B) A218
• Equity stakes and subsidiary shares deducted from net equity (C) A218 EXT
• Equity stakes and subsidiary shares retained (D = B - C)
• Tangible fixed assets (E) A224
• Assets under construction (F) A227
• Retained fixed assets (G = E + F)
• Doubtful and disputed receivables net of allocated provisions (H) A213
  NET FIXED ASSETS (I = D + G + H)
  III. RATIO (J = A / I x 100)
  Standard: ≥ 100
  EXT - extracted from the line

3