Instruction No. 001-DOM/25 on the Operation of the Inter-Microfinance Institution Market

CENTRAL BANK OF MADAGASCAR

DIRECTION
OF MONETARY OPERATIONS

INSTRUCTION NO. 001 – DOM/25 on the operation of the inter-institutional microfinance market (IMF)

The Governor of the Central Bank of Madagascar,

Having regard to Law No. 2016-004 of July 29, 2016, supplemented by Law No. 2016-057 of February 2, 2017, establishing the Statutes of the Central Bank of Madagascar,

Having regard to Law No. 2017-026 of February 16, 2018 on microfinance,

Having regard to Banking Law No. 2020-011 of September 1, 2020,

Having regard to Decree No. 2023-011 of January 10, 2023 repealing the provisions of Decree No. 2019-2069 of November 6, 2019 on the appointment of the Governor of the Central Bank of Madagascar,

DECIDES

This instruction aims to set out the procedures relating to the operation of the market established by the CBM and intended for inter-institutional microfinance (IMF) operations. It is referred to as the Inter-MMF Market.

Article 1: Participants in the Inter-MMF Market Segment

The CBM makes available to MFIs a processing platform for inter-MMF operations, referred to as the Inter-MMF Market, to facilitate their exchange of funds and securities.

The Inter-MMF Market segment is open to microfinance institutions, as defined in Article 1 of Law No. 2017-026 of February 16, 2018 on microfinance, participating in each money market transaction reserved for this category of credit institution.

Article 2: Eligibility of MFIs – Nature of Contracts

The MFIs eligible for the Inter-MMF Market segment are determined by the criteria set by the CSBF, in accordance with the provisions of Article 38 of the microfinance law as amended by the provisions of Article 255 of Banking Law No. 2020-011 of September 1, 2020.

Inter-MMF operations constitute over-the-counter contracts.

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Article 3: Characteristics of Operations

The characteristics of the operations processed on the Inter-MMF Market segment concern essentially:

• the amount,
• remuneration, and
• the duration,

The conditions of each operation are freely negotiated between the contracting parties.
Operations between the participants referred to in Article 1 of this instruction may be carried out either without guarantee ("unsecured") or with guarantees in the form of:

• Bond securities which may take the form of public securities¹, CBM securities² or possibly private securities meeting the requirements of MFIs, discounted or not,
• Signature guarantees.

The CBM is the central depository for public securities and ensures their centralized and secure management.

It is understood that, for secured operations, only operations backed by public securities or CBM securities are handled by the POMI Platform.

Other types of collateral/guarantees, such as private securities or signature guarantees, do not benefit from this infrastructure and remain under the responsibility of the participants in the Inter-MMF Market segment.

Article 4: Role of the CBM

All lending and borrowing operations between MFIs must be carried out on the POMI Platform. Its implementation is governed by an instruction from the CBM.

Operations are administered by the CBM at the level of the POMI Platform.

The CBM reserves the right to intervene in the POMI system in case of non-compliance with the rules governing its normal operation.

Article 5: Entry into Force

This instruction enters into force as of MAY 2, 2025.

Antananarivo, MAY 2, 2025

THE GOVERNOR
AIVO H. ANDRIANARIVELO

¹ Public Treasury securities (BTA, BTF, ...) or comparable public Treasury obligations ² Negotiable debt securities (deposit certificates, treasury bills, ...), placement certificates, ...

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ANNEX - I

INTER-MMF UNSECURED EXCHANGES

Operation dated ______

Lender	Borrower	Amount (in Ariary)	Duration (in days)	Settlement Date	Rate
		In figures	In words		Maturity

At ______, on ______
(Names, Authorized Signatures and Stamp)

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ANNEX - II

INTER-MMF SECURED EXCHANGES

Operation dated ______

Lender	Borrower	Amount (in Ariary)	Duration (in days)	Settlement Date	Rate
		In figures	In words		Maturity

GUARANTEE:
Interest Amount: Ariary ......
Total Guarantee Amount: Ariary ......

Order No.	Nature	Reference	Acquisition Rate	Maturity	Discount Rate	Nominal Amount of Security (In Ariary)
						In figures	In words
TOTAL...

At ______, on ______
(Names, Authorized Signatures and Stamp)