BANK OF THE REPUBLIC

OF BURUNDI

THE DIRECTORATE

Circular No. 14/06 on the consolidation of accounts of banks and financial institutions issued pursuant to Law No. 1/017 of October 23, 2003 regulating banks and financial institutions.

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Article 1st: Banks and financial institutions are authorized to consolidate their accounts under the conditions required by this circular.

Article 2: The consolidation of accounts is authorized for a group consisting of a parent financial institution and other enterprises with a financial character, as defined in Articles 3 to 7 of the banking law, that this institution exclusively controls.

Article 3: Exclusive control is established when the parent company holds a capital stake conferring the majority of voting rights and the power to appoint governing bodies.

Article 4: Consolidated accounts (balance sheet, income statement...) must be certified by the auditor(s) of the parent company under the conditions provided for in Article 64 of the banking law.

Article 5: This circular annuls and replaces Circular No. 14/03 of February 10, 2003.

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Issued in Bujumbura on November 24, 2006

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BANK OF THE REPUBLIC OF BURUNDI

Mrs. S. BIBARA
1st Vice-Governor.

G. NTISEZERANA
Governor.