Circular 106 to banks: reserve-requirement exemption and rates for loans to free zones and industrial parks
Summary: BRH circular under Article 83 of the banking law of 14 May 2012. Banks need not hold reserve requirements on gourde resources lent to build and equip authorized free zones and industrial parks. The BRH offers banks advances of up to 15 years at 1 to 3 percent a year for these loans, and banks must lend them on at a fixed rate of no more than 7 percent for 15 years. Banks report quarterly on these loans. In force 11 December 2015.
Key Findings
- Gourde resources lent to build buildings and essential infrastructure (roads, drainage, water, electricity) in authorized free zones and industrial parks are exempt from reserve requirements.
- BRH advances to banks run up to 15 years at an annual rate kept between 1 and 3 percent, whatever the 91-day BRH bond rate.
- Loans funded by the BRH carry a fixed rate of at most 7 percent a year for 15 years, then a variable rate.
- Advanced funds not yet disbursed do not count toward reserves and cannot be placed in BRH bonds.
- Banks file a quarterly report on credit to free zones and industrial parks with their circular 83-4 compliance reports.
How to cite
Bank of the Republic of Haiti (BRH), 2015, Circular 106 to banks: reserve-requirement exemption and rates for loans to free zones and industrial parks, https://brh.ht/wp-content/uploads/2018/08/zones_franches-1.pdf
- Rights holder
- Banque de la République d'Haïti (BRH)