Circular 106-1 to banks: reserve-requirement exemption for commercial credit to free zones
Summary: BRH circular of 7 June 2016 under Article 83 of the 2012 banking law. It exempts from reserve requirements the gourde resources banks lend to build and equip authorized free zones, and offers banks BRH advances of up to 15 years at no more than 3 percent a year. Loans funded this way carry a fixed rate of at most 7 percent for 15 years. Banks must pass the funds to clients within three working days and report quarterly. In force 15 June 2016.
Key Findings
- Gourde resources lent for buildings and essential infrastructure in authorized free zones are exempt from reserve requirements.
- BRH advances to banks run up to 15 years at an annual rate of no more than 3 percent, fixed for the life of the advance.
- BRH-funded loans carry a fixed rate of at most 7 percent a year for 15 years, then a variable rate.
- Banks must allocate BRH disbursements to clients within three working days; undisbursed funds do not count toward reserves.
- Loans remain subject to prudential circulars 87, 83-4 and 88; banks report quarterly on free-zone credit.
How to cite
Bank of the Republic of Haiti (BRH), 2016, Circular 106-1 to banks: reserve-requirement exemption for commercial credit to free zones, https://brh.ht/wp-content/uploads/2018/08/credit_zones_franches.pdf
- Rights holder
- Banque de la République d'Haïti (BRH)