Regulatory Alerts2019-01-03
Added · Updated
Instruction No. 38 on the Determination of the Global Effective Rate (GER)
The Central Bank of Congo mandates credit institutions and microfinance institutions to calculate and disclose the Global Effective Rate (GER) for all loans offered to individual and corporate clients. The regulation defines the GER as an annual percentage rate including interest, fees, and commissions, and specifies the actuarial formula and components to be used in its calculation. It excludes certain taxes, notary fees, and late penalties from the GER calculation and requires institutions to publish individual GERs and submit monthly average rates to the central bank. The instruction entered into force six months after its signature on January 3, 2019.