• It is the spirit and not the form of law that keeps justice alive.
    Earl Warren

RECENT AMENDMENTS ON THE RESERVE REQUIREMENTS OF THE BANKS

Amendment on the Regulation for Determination of the Qualifications of Loans and Other Receivables and Reserve Requirements by the Banks (“Regulation”) is published with the Official Gazette dated 14 December 2016. Although the first three articles of the Regulation are entering in force with the publication, fourth article amending the temporary Article 13 will apply retroactively, as being in force by 21 July 2016.

In general, the Regulation provides three new temporary articles; (i) temporary Article 11 declares new reserve ratios to be applied as per Article 7 of the Provisions Regulation until 31/12/2017; (ii) temporary Article 12 enables the banks to restructure non-performing loans twice until the end of 2017 provided that such restructured non-performing loans will be announced in the financials of the banks; and (iii) temporary Article 13 extends the application of the periods in Article 4 for certain debtors, such as the debtors which Savings Deposit Insurance Fund (“SIDF”) has been appointed as a trustee based on the state of emergency, starting from 21 January 2017.



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