Given the economic crisis caused by the Covid-19 pandemic, Jean Baden Dubois, Governor of the Bank of the Republic of Haiti (BRH) in the circular #115, informs of several easing measures relating to banks, development finance companies, credit card companies and leasing companies,) and calls on all of these financial institutions to comply with the following measures relating to commercial loans, housing and consumption.

1. 3-month moratorium on all loans :

Financial institutions are required to grant a three (3) month moratorium, from April 1 to June 30, 2020, to any debtor in the system who wishes to benefit from it. During this period, only the payment of interest on the receivables will be required.

2. Restructuring and provisioning :

By mutual agreement with their customers, financial institutions can redefine the terms of a loan when the financial situation of these customers deteriorates. For a loan thus restructured, financial institutions are authorized, for a period of one (1) year:

• Not to make specific provisions for sound loans as of March 31, 2020;

• To establish specific provisions of 5% on all loans that were sound at September 30, 2019, in accordance with Circular #87 on the classification of loans and the establishment of provisions for bad debts.

3. Other measures :

During the moratorium period :

• All receivables are exempt from late fees including those on credit cards;

• The realization of guarantees on mortgage loans is suspended;

• Data transmission to the Credit Information Bureau (BIC) is suspended for the months of March, April, May and June 2020.

HL/ HaitiLibre