Regulatory Alerts2019-01-03
Added · Updated
Instruction No. 38 on the Determination of the Global Effective Rate (TEG)
This instruction mandates credit establishments and microfinance institutions in the Democratic Republic of the Congo to calculate and disclose the Global Effective Rate (TEG) for all credit offers to individual and corporate clients. It defines the TEG as an annual percentage rate including interest, fees, and commissions, while excluding taxes, notary fees, and penalties for late payment. Regulated entities must apply a declining balance method for interest calculations, limit early repayment penalties to 50% of remaining interest, and submit monthly TEG data to the Central Bank for publication. The regulation entered into force six months after its signature on January 3, 2019.
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