Instruction No. 63 on Emergency Liquidity Provision to Banks

CENTRAL BANK OF CONGO
THE GOVERNOR
INSTRUCTION NO. 63 TO BANKS ON EMERGENCY LIQUIDITY PROVISION

The Central Bank of Congo,
Having regard to the Organic Law No. 18/027 of December 13, 2018 on the organization and functioning of the Central Bank of Congo, particularly Articles 10 and 11; Having regard to Law No. 22/069 of December 27, 2022 on the activity and supervision of credit institutions; Considering the need to establish an operational framework for emergency liquidity provision, in order to preserve financial system stability; Enacts the following provisions:

TITLE I: GENERAL PROVISIONS
Article 1:
This Instruction sets out the procedures and conditions for emergency liquidity provision by the Central Bank of Congo to eligible banks facing a temporary liquidity imbalance that may, in particular, undermine financial stability.

Article 2:
For the purposes of this Instruction, the following terms are defined as:

• eligible bank: a systemically important bank or any other bank meeting the criteria set out in Article 4 of this Instruction;
• emergency liquidity provision (ELP): an operation by which the Central Bank of Congo grants exceptional, temporary, and discretionary financing to an eligible bank facing a situation of temporary illiquidity;

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• financing plan: a document presenting, on a monthly basis, projections of asset and liability items as well as the cash flow of a bank for the entire duration of the emergency liquidity operation.

Article 3:
The Central Bank of Congo makes available to banks an emergency liquidity provision window aimed at:

• preserving financial system stability by offering temporary support, strictly limited in duration and amount, to eligible banks;
• preventing the spread of risks linked to a potential bank failure.

This window is reserved for systemically important banks as defined in Central Bank of Congo Instruction No. 59. Nevertheless, the Regulatory and Supervisory Authority may, at its discretion, provide emergency liquidity to non-systemic banks.

TITLE II: ELIGIBILITY CONDITIONS AND CONSTITUTION OF THE EMERGENCY LIQUIDITY APPLICATION FILE
Article 4:
To be eligible for the emergency liquidity window, the applicant must meet the following conditions:

• be solvent and viable on the date of application and/or demonstrate an ability to maintain/restore its solvency within six months;
• have exhausted all other financing options, particularly in the interbank market, at the Central Bank of Congo's refinancing windows (intraday loans, auction-based loans, marginal lending facility) and intra-group financing;
• demonstrate a temporary liquidity need due to exceptional circumstances;
• provide sufficient acceptable collateral, in accordance with Article 9 of this Instruction.

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Article 5:
An application for emergency liquidity assistance must include the following information:

• the requested amount;
• the requested maturity;
• the interest rate;
• the list of assets pledged as collateral, in accordance with Article 9 of this Instruction;
• a projected cash flow statement for the next twelve months;
• a loan repayment schedule;
• a financing plan;
• any other information justifying the emergency liquidity request.

Article 6:
Access to emergency liquidity under this Instruction excludes simultaneous access to the monetary policy refinancing window.
When a bank requests emergency liquidity assistance while already benefiting from support under Instruction No. 4 on refinancing operations within the framework of monetary policy, such support is automatically rolled over and reclassified under emergency liquidity provision conditions upon implementation of the requested assistance.

TITLE III: OPERATIONAL PROCEDURES
Article 7:
The amount of an emergency liquidity provision operation is calibrated for a maximum period of two weeks based on the net flow forecasts anticipated by the banking institution during this period and transmitted to the Central Bank of Congo, taking into account its current liquidity position. This amount may include a minimum liquidity buffer to ensure the continuity of the bank's essential operations.

Article 8:
The initial loan duration is a maximum of three months, renewable subject to the prior agreement of the Central Bank of Congo and the implementation of enhanced conditions.

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Article 9:
Admissible collateral for an emergency liquidity provision operation includes:

• assets eligible under Central Bank of Congo Instruction No. 6 on admissible collateral for refinancing operations within the framework of monetary policy;
• sound claims on financial and non-financial enterprises as well as retail clients that do not meet the eligibility criteria for the refinancing window, in accordance with Central Bank of Congo Instruction No. 6 on admissible collateral for money market operations;
• tangible and financial fixed assets, excluding equity investments.

The assets referred to in the first paragraph must meet the following conditions:

• the value of collateral provided must fully cover the granted loan, including payable interest, after application of haircuts;
• be owned by the requesting banking institution;
• not be pledged or free of encumbrances;
• have a maturity date later than that of the emergency liquidity provision contract;
• not be issued or guaranteed by the requesting banking institution or an affiliated party.

Admissible collateral is subject to haircuts established discretely by the Central Bank of Congo and accepted based on their liquidity and market value. The Central Bank of Congo may require additional collateral in case of devaluation of already provided guarantees during the life of the emergency liquidity provision operation. The Central Bank of Congo determines the priority order of accepted collateral for emergency liquidity provision.

Article 10:
The interest rate applicable to emergency liquidity provision is set at least 3.5 percentage points above the marginal lending facility rate, according to the Central Bank of Congo's discretionary assessment. Interest is deducted in advance upon grant of the emergency liquidity loan.

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Article 11:
The amount made available to the bank corresponds to the amount granted by the Central Bank of Congo, reduced by advance interest and value-added tax.

Article 12:
The beneficiary of emergency liquidity is subject to the strict application of the following additional measures:

• suspension of dividend distributions and exceptional expenditures;
• submission of a daily report on its cash flow situation to the Central Bank of Congo/Departments responsible for market banking operations and financial stability;
• flawless implementation of a financing plan validated by the Central Bank of Congo;
• any other measures imposed by the Central Bank of Congo.

Article 13:
Repayment of emergency liquidity takes place at the end of the period granted by the Central Bank of Congo.
It is effected through an automatic debit from the bank's settlement account held at the Central Bank of Congo, within the framework of the Automated Transfer System (ATS).

Article 14:
The Central Bank of Congo conducts enhanced monitoring of the liquidity situation and the use of allocated funds. It may impose audits or corrective measures as necessary.

TITLE IV: CONDITIONS AND PROCEDURES FOR IMPLEMENTING EMERGENCY LIQUIDITY
Article 15:
The final decision to grant emergency liquidity lies within the discretionary power of the Governor of the Central Bank of Congo.

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The implementation of emergency liquidity is conditional upon the signing of a loan contract between the Central Bank of Congo and the requesting banking institution, which specifies the terms for granting said facility.

Article 16:
The Central Bank of Congo may, at any time, suspend or terminate the loan contract for emergency liquidity provision, particularly in cases of:

• non-compliance by the bank with the provisions of said loan contract, this Instruction, or other applicable regulatory provisions;
• insufficiency of assets pledged as collateral due to depreciation of their value.

TITLE V: FINAL PROVISIONS
Article 17:
All information related to emergency liquidity provision operations is strictly confidential and may not be disclosed, except upon express decision of the Central Bank of Congo.

Article 18:
This Instruction enters into force on the date of its signature and repeals all prior provisions contrary thereto.

Done at Kinshasa, on 11 DEC 2025
André WAMESO NKUALOLOKI
Governor