Instruction No. 44 on the Suspension of Certain Regulatory Provisions Following the COVID-19 Pandemic

BANQUE CENTRALE DU CONGO

THE GOVERNOR

INSTRUCTION NO. 44 TO CREDIT INSTITUTIONS AND MICROFINANCE INSTITUTIONS REGARDING THE SUSPENSION OF THE APPLICATION OF CERTAIN REGULATORY PROVISIONS FOLLOWING THE CORONAVIRUS COVID-19 PANDEMIC

The Central Bank of Congo,

• In view of Law 018/027 of December 13, 2018, on the Organization and Operation of the Central Bank of Congo, particularly its Article 10;

• In view of Law No. 003/2002 of February 2, 2002, relating to the activity and control of Credit Institutions, specifically in its Title III;

• In view of Law No. 11/020 of September 15, 2011, setting the rules applicable to the microfinance activity in the Democratic Republic of the Congo, specifically in its Title II;

Decides the following provisions in light of the impact of the Covid-19 pandemic on the national and international economies and its consequences on the Congolese financial sector:

I. Business Continuity Plan (BCP):

Article 1:

Credit Institutions and Microfinance Institutions are required to:

• update their respective business continuity plans without delay, in particular to:
  • integrate measures taken to address the Covid-19 pandemic;
  • facilitate the link between bank accounts and mobile money;
  • encourage the use of digital channels.
• transmit the updated BCP to the Central Bank of Congo for information.

.../... 563, Colonel Tshatshi Boulevard - Kinshasa - Gombe Email: sgouvemeur@bcc.cd / svicegouve@bcc.cd / cabgouv@bcc.cd - Website: http://www.bcc.cd

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Article 2:

The annual meetings of the General Assemblies and Boards of Directors of Credit Institutions and Microfinance Institutions for the 2019 fiscal year are, until further notice, postponed.

II. Management of Credit Portfolio Quality

Article 3:

Credit Institutions and Microfinance Institutions are required to:

• suspend the application of late penalties on non-performing loans during the crisis period;
• prioritize amicable settlement of disputes;
• encourage clients to request restructuring of non-performing loans based on the evolution of their repayment capacity;
• grant grace periods taking into account the situation caused by the coronavirus;
• prioritize credit to the food and pharmaceutical sectors.

Article 4:

The number of restructurings or reschedulings of non-performing loans during the Covid-19 crisis is no longer limited.

III. Liquidity

Article 5:

Credit Institutions and Microfinance Institutions are required to:

• continuously provide liquidity to customers, notably by increasing payment terminals, where applicable, by mutualizing said means within the sector;
• consider repatriating a portion of unproductive foreign currency assets held with foreign correspondents to meet customer needs.

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IV. Minimum Capital

Article 6:

The regulatory requirement for minimum bank capital of USD 50 million equivalent in CDF is postponed to January 1, 2022.

V. Final Provision

Article 7

This Instruction suspends, until further notice, all prior provisions contrary hereto and enters into force on the date of its signature.

Done in Kinshasa, on March 24, 2020

Déogratias MUTOMBO MWANA NYEMBO Governor

563, Colonel Tshatshi Boulevard - Kinshasa - Gombe Email: sgouvemeur@bcc.cd / svicegouve@bcc.cd / cabgouv@bcc.cd - Website: http://www.bcc.cd