Instruction No. 009 to Savings and Credit Cooperatives and Microfinance Institutions Regarding the Transmission of Periodic Statements

INSTRUCTION NO. 009 TO SAVINGS AND CREDIT COOPERATIVES AND MICROFINANCE INSTITUTIONS REGARDING THE TRANSMISSION OF PERIODIC STATEMENTS

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, specifically Article 6;

Having regard to Law No. 003/2002 of February 2, 2002, relating to the activity and supervision of Credit Institutions, specifically Title IV;

Having regard to Law No. 002/2002 of February 2, 2002, laying down provisions applicable to Savings and Credit Cooperatives, specifically Articles 63 to 66;

Having regard to Instruction No. 1 to Microfinance Institutions, specifically Articles 45 to 46;

Decrees the provisions relating to the transmission of periodic statements by Savings and Credit Cooperatives and Microfinance Institutions, hereinafter referred to as "subject entities".

Article 1

Subject entities are required to transmit electronically, using the FinA format, the following periodic statements:

A. Monthly On the 15th calendar day of the month following the close of the previous month: • The accounting statement: – Balance Sheet: Assets and Liabilities; – Statement of Comprehensive Income; – Cash Flow Statement. • Annexes to the accounting statement: – Normal commitments; – Litigious commitments; – Breakdown of credits to customers or members; – Breakdown of deposits from customers or members; – Breakdown of balances with the umbrella body and other financial intermediaries; – Breakdown of commitments received from the umbrella body and other financial intermediaries; – Breakdown of balances and commitments by currency; – Statements of overdue receivables and provisions; – Statements of off-balance sheet litigious commitments; – Breakdown of credit exposures allocated to income-generating activities; – Aged balance by beneficiary; – Aged balance by nature of overdue credits; – Breakdown of medium-term and long-term borrowings and debts.

B. Annually On the 6th month and the 4th month following the close of the previous fiscal year, respectively for Savings and Credit Cooperatives and for Microfinance Institutions: • Certified financial statements: – Certified balance sheet; – Certified income statement. • Annexes to the accounting statement: – Breakdown of credits to customers or members; – Breakdown of deposits from customers or members; – Statements of overdue receivables and provisions; – Aged balance by nature of overdue credits. • The global internal control report; • The governance memorandum; • The updated three-year business plan based on the evolution of the environment, activity, and assumptions; • The business continuity plan; • The minutes of the General Assembly.

Article 2

The transmission of financial statements to the Directorate for the Supervision of Financial Intermediaries is carried out electronically via email to: microfinance@bcc.cd.

Subject entities may also use the Provincial Entities of the Central Bank of the Congo within their jurisdiction for the transmission of their periodic statements.

Article 3

Subject entities are required to prepare and transmit to the Directorate for the Supervision of Financial Intermediaries of the Central Bank of the Congo an annual activity report in accordance with the model included in the annex.

This activity report must contain information on, inter alia: – Scope indicators; – General information on members, partners, shareholders, executives, and staff of the institution; – Synthesis analysis of the evolution of the financial situation (balance sheet, off-balance sheet, and income statement) from one year to the next, justifying significant variances; – Future prospects of the subject institution.

Article 4

Any late transmission of periodic statements is subject to a penalty per day of delay, increased by various fees calculated in accordance with the tariffs and conditions of the Central Bank of the Congo.

Article 5:

This Instruction enters into force on January 1, 2013.

Done in Kinshasa, on April 14, 2012

J-C. MASANGU MULONGO Governor

MODEL OF ACTIVITY REPORT TO BE PRODUCED

1. ECONOMIC ENVIRONMENT
2. PRESENTATION OF THE INSTITUTION 2.1 History 2.2 Vision, mission, and objective 2.3 Services offered 2.4 Resources of the Institution 2.5 Results of the Institution 2.6 Difficulties encountered by the Institution in achieving its objective 2.7 Key events

CATEGORIES N N-1 Name of the COOPEC/IMF Date of commencement of activities Telephone coordinates Email addresses Physical address Number of

• Branches
• Counters
• Outposts Statutory bodies including:
• Women
• Men Staff including:
• Women
• Men Average salary (specify CDF or USD)

OTHER INFORMATION (specify) YES NO Existence of an MIS Use of an external audit firm Own building or rented Received technical assistance If yes, in which areas Received financial assistance If yes, from which partner

ANNEX

CATEGORIES N % N-1 % Var. % ASSETS Cash operations including:

• Cash
• Bank Operations with members or customers including:
• Short-term credits
• Medium-term credits
• Litigious receivables Various operations including:
• Various debtors
• Adjustments and other uses Fixed assets TOTAL ASSETS

LIABILITIES Cash operations Including: - Term borrowings (umbrella body and other FIs) Operations with members or customers including:

• Savings and ordinary deposits
• Term deposits Various operations including:
• Liaison accounts
• Various creditors
• Adjustments and other uses
• Medium and long-term borrowings and debts Equity including:
• Net income
• Retained earnings
• Capital TOTAL LIABILITIES

5. MANAGEMENT ACCOUNT OR INCOME STATEMENT CATEGORIES N N-1 VAR. % NET FINANCIAL INCOME INCLUDING:

• Interest on medium-term credits
• Other financial income
• Interest on term deposits
• Other financial charges GROSS OPERATING RESULT INCLUDING:
• Operating subsidies
• General operating expenses
• Staff costs CURRENT OPERATING RESULT INCLUDING:
• Depreciation charges
• Provision charges
• Losses on irrecoverable receivables EXCEPTIONAL RESULT RESULT BEFORE TAX NET RESULT OF THE FISCAL YEAR

PRUDENTIAL RATIOS RATIOS STANDARD N N-1 Minimum capital Prudential Equity Solvency Capitalization Immediate liquidity Coverage of fixed assets by PE Coverage of medium and long-term uses by stable resources Supervision of exchange positions

PERFORMANCE INDICATORS TYPE OF INDICATOR INDICATOR N N-1 I. RENTABILITY Indicator Return on equity Portfolio yield Operational self-sufficiency II. PORTFOLIO QUALITY Indicator Portfolio at Risk (PAR) Ratio of abandoned receivables III. EFFICIENCY AND PRODUCTIVITY Indicator Operational efficiency

8. CONCLUSION AND FUTURE PROSPECTS