BANK OF THE REPUBLIC OF BURUNDI

THE GOVERNOR

CIRCULAR NO. 01/2024 ON THE MANDATORY MINIMUM CAPITAL OF FINANCING AND/OR GUARANTEE INSTITUTIONS ISSUED PURSUANT TO THE REGULATION ON ENTITIES OPERATING IN BURUNDI PROVIDING FINANCING AND/OR GUARANTEE SERVICES

Pursuant to Law No. 1/34 of December 2, 2008 establishing the statutes of the Bank of the Republic of Burundi; Pursuant to Law No. 1/09 of May 30, 2011 establishing the Code of Private and Publicly Participated Companies; Pursuant to Law No. 1/17 of August 22, 2017 governing banking activities.

Pursuant to Regulation No. 004/2024 of April 12, 2024 on entities operating in Burundi providing financing and/or guarantee services

The Bank of the Republic of Burundi, hereinafter referred to as the "Central Bank", hereby issues:

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Article 1: Object

This circular aims to specify the minimum capital required for financing and/or guarantee institutions.

Article 2: Definitions

For the purposes of this circular, the following terms apply:

Guarantee Institution: any institution whose purpose is to take, for valuable consideration and in the interest of a natural or legal person, a signed commitment such as an endorsement or guarantee for loans granted by credit institutions or microfinance institutions or any other entity authorized by the Central Bank to conduct credit operations;

Financing Institution: any institution whose purpose is the refinancing of loans granted by credit institutions and microfinance institutions or any other entity authorized by the Central Bank to conduct credit operations, to their clients by mobilizing long-term resources on financial markets or from development partners.

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Article 3: Required Minimum Capital

The minimum cash capital of Ten Billion Burundi Francs (10,000,000,000 BIF) must be fully paid up prior to the submission of the approval application dossier and must remain in the same account opened at a financial institution until the commencement of operations.

Article 4: Entry into Force

This Circular enters into force on the day of its publication on the Central Bank's website and in the Official Gazette of Burundi.

Done at Bujumbura, on April 12, 2024

Edouard Normand BIGENDAKO
Governor. — Governor

1. Government Avenue - P.O. Box 705 BUJUMBURA - Tel: (257) 22-20 40 00 / 22 22 27 44 - Fax: (257) 223128 - Email: brb@brb.bi