Instruction No. 0010 on the Minimum Capital of Microfinance Institutions

INSTRUCTION NO. 0010 RELATING TO THE FIXING OF THE MINIMUM CAPITAL OF MICROFINANCE INSTITUTIONS

The Central Bank of the Congo,

Having regard to Law No. 005/2002 of May 7, 2002 relating to the constitution, organization and functioning of the Central Bank of the Congo;

Having regard to Law No. 003/2002 of February 2, 2002 relating to the activity and control of Credit Institutions, particularly Article 11;

Having regard to Instruction No. 1 updated on December 18, 2005 to Microfinance Institutions;

Having regard to Instruction No. 002 of April 14, 2012 relating to the prudential standards of Savings and Credit Cooperatives as well as Microfinance Institutions, particularly Article 3;

Decrees the following provisions regarding the minimum capital of Microfinance Institutions:

Article 1 The minimum capital of Microfinance Institutions is set as of January 1, 2013 at the equivalent in Congolese francs of: – USD 100,000.00 for first and second category Microcredit Enterprises and – USD 350,000.00 for Microfinance Societies.

Article 2 Any Microfinance Institution is required to have at all times a paid-up share capital at least equal to the minimum regulatory capital fixed by the Central Bank of the Congo.

Article 3 The Central Bank of the Congo reserves the right, at the time of approving a Microfinance Institution, to require more, particularly based on the activity forecasts submitted to it and to absorb potential losses in the first years of operation.

Article 4 The level of minimum capital for Microfinance Institutions will be increased as of January 1, 2017 to the equivalent in Congolese francs of: – USD 250,000.00 for first and second category Microcredit Enterprises and – USD 700,000.00 for Microfinance Societies.

Article 5 Institutions in operation, whose basic own funds as defined in Instruction No. 002 of April 14, 2012 of the Central Bank of the Congo are lower than the minimum capital defined in the present Instruction, have a transitional period of one year to proceed with the increase of their share capital to the required regulatory level.

Article 6 Institutions that have obtained favorable opinions from the Central Bank of the Congo to operate, but are not yet in operation due to administrative procedures to obtain the legal personality of a public limited company, also have the same one-year transitional period to adjust their share capital to the required regulatory level.

Article 7 This Instruction, which enters into force as of January 1, 2013, repeals all previous provisions contrary to the present.

Done in Kinshasa, on January 10, 2013. J-C. MASANGU MULONGO Governor