1 INSTRUCTIONS 2004
2 INSTRUCTION OF MARCH 4 TH, 2004 FIXING THE REDISCOUNT RATE Pursuant to the Resolution of the Council of Money and Credit of March 4 th, 2004 the rediscount rate shall be fixed at 4, %. This Instruction shall repeal the provisions of Instruction of May 29 th, 2003 and enter into force as from March 7 th, The Governor Mohammed LAKSACI
3 INSTRUCTION OF MAY 13 TH, 2004 RELATING TO THE RESERVE REQUIREMENT SYSTEM Article 1: Pursuant to Article 18 of Regulation of Moharram 12 th, 1425 corresponding to March 4 th, 2004 setting the conditions of minimum reserve requirement, the object of this Instruction is to set the effective conditions to constitute reserves requirement by Banks. Article 2: The reserve requirement assessment shall include all kinds of deposits in Dinars, i.e. demand deposits, time deposits, advance deposits, saving books cash vouchers and other deposits. Article 3: The reserve requirement rate shall be fixed at 6, 5 % of the reserves assessment as defined in Article 2 above. Article 4: Reserve requirement remuneration rate shall be fixed at 1, 75% per year. The remuneration shall be carried out as follows: Ai x Ni x P Rt = Rt= remuneration to be paid by the Bank of Algeria on reserves assets during the constitution period; Ai= reserves assets to be constituted during the constitution period, (assets of reserves exceeding the amount of reserve requirements to be constituted shall not be paid); Ni= calendar days during the constitution period; P= reserves assets remuneration rate. Article 5: The penalty rate for non constitution or insufficient constitution of the reserves requirement shall be (2) two points above the reserves requirement remuneration. Penalty computation shall be carried out as follows:
4 Bi x Ni x P1 Pt = Pt= penalty due for the insufficient reserve requirement assets constitution; Bi= average amount of reserves assets non constituted; Ni= number of calendar days during the constitution period; P1= penalty rate. Article 6: Banks shall send a statement showing the computation assessment statement of reserve requirements in accordance with canvas attached in appendix of this Instruction to the Bank of Algeria- General Department for Research- within the (10) ten days after closure of the reserves constitution period. Article 7: This Instruction shall cancel and replace Instruction of February 11 th, 2001 as amended and completed relating to the Reserve Requirement System. Article 8: This Instruction shall enter into force as from the date of its signature. The Governor Mohammed LAKSACI
5 Bank:. APPENDIX TO INSTRUCTION STATEMENT OF RESERVE REQUIREMENT ASSESSMENT FROM 15.TO 14.. In thousands of dinars Elements end Amounts I. Deposits in dinars a) demand deposits b) time deposits c) advance deposits d) cash vouchers e) saving passbooks f) other deposits Total Done, on Signature (1) (1)Signature of the Officer who shall sign 10R model statement
6 INSTRUCTION OF MAY 20 TH, 2004 SETTING THE TERMS AND CONDITIONS OF FOREIGN CREDITS STATEMENT Article 1: In accordance with Order of Jummada Ethania 1424 corresponding to August 26 th, 2003 relating to Money and Credit and Order of Safar 23 rd, 1417 corresponding to July 9 th, 1996 relating to the repression of law infringement and Regulation of exchange and capital movements to and from abroad as amended and completed, the object of this Instruction is to set the terms and conditions of foreign credits statement and transmission of any relevant information to control and monitor financial foreign liabilities. Article 2: Any foreign credit incurred with Banks, governments, private and public economic operators regularly registered in the Trade Register, shall be subject to a statement to the Bank of Algeria- General Department of Exchange according to the terms, procedures and deadlines specified by this Instruction. Article 3: Foreign credits with a reimbursement term above or equal to 12 months shall belong to the medium and long term foreign debt. They shall be declared according to the procedure debt identification sheet (D.I.S), debts maturity date sheet (D.M.S) and debts correction sheet (D.C.S) specified in appendix. Credits and/or foreign liabilities with a period between the date of the credit utilization and the final maturity date shall vary 60 and 360 calendar days classified as short term debts. Foreign liabilities of a period less than 60 days shall be considered as cash payment and shall not result in a prior statement. The 360 day credit line charge shall be considered as medium and long term debts. Article 4: Long and medium term foreign debt statements shall be carried out within the following maximum periods: - 60 days as from the date of signature of the financial agreement for identification by sheet D.I.S days as from each use (encashment) and its reimbursement maturity by presenting D.M.S and/or D.C.S sheet to the Department of Foreign Debt.
7 - 21 days before the maturity date for any payment of premium, commission, insurance, contractual interests and/or principal reimbursement according to the exchange file as defined in Article 7. Article 5: Short term debt statements, carried out according to the canvas in appendix, shall be sent to the Department of Foreign Debt at the end of the month following that month of use or reimbursement, at the latest. Article 6: Long and medium term foreign credit statement shall compulsorily lead to the remittance of a copy of loan contract or a financial agreement and any other document revealing foreign liability in addition to the D.I.S sheet and D.M.S sheet Short term foreign credits shall be subject to the monthly statement according to canvas in appendix. Article 7: Reimbursements and payments of long and medium term debt interests shall be carried out by the submission of the File Exchange, according to the credit type as follows: a. Governmental and/or Bilateral Credits: Principal amount in appendix IB and the Interests amount in appendix V; b. M.LT Financial Credits: Principal amount in appendix II B and the Interests amount in appendix V; c. Bank Credits for a period above 360 days: Principal amount in appendix III B and the Interest amount in appendix V; d. Multilateral Credits and borrowings requirements: Principal amount in appendix IV B and the Interests amount in appendix V; e. Suppliers unsecured Credits: Principal amount in appendix IX B and the Interests amount in appendix V; f. Other Payments (Commissions, Agios and any other payment excluded from one of the appendixes clearly provided for) in appendix VII; g. Payments in Foreign Currency Accounts in appendix VIII; h. Commercial Credits (Principal+ Interests) with a term less or equal to 360 days in appendix VI. Article 8: Any infringement of the provisions of this Instruction shall expose its perpetrator(s) to sanctions prescribed by Law, namely Order of Safar 23 rd, 1417 corresponding to July 9 th, 1996 relating to the repression of the infringement of the law and regulation of exchange and capital movements to and from abroad, as amended and completed. Article 9: This Instruction shall enter into force as from the date of its signature. The Governor Mohammed LAKSACI
8 INSTRUCTION OF JULY 22 ND, 2004 RELATING TO THE DETERMINATION OF THE PREMIUM RATE DUE UNDER THE CONTRIBUTION IN THE BANK DEPOSITS INSURANCE FUND Article 1:, The object of this Instruction is to fix the premium rate that Banks and foreign Banks branches operating in Algeria shall pay pursuant to Regulation of Moharram 12 th, 1425 corresponding to March 4 th, 2004 relating to the Bank Deposits Insurance System. Article 2: Pursuant to the Regulation mentioned in Article 1 above, the rate of the premium due by Banks and foreign Banks branches operating in Algeria shall be fixed for the financial year 2003 at 0, 35% of all the deposits recorded on December 31 st, 2003, under their contribution in the Bank Deposit Insurance System, in accordance with the Resolution of the Council of Money and Credit of July 19 th, Article 3: Premiums shall be paid, in favour of the Bank Deposits Guarantee Fund account to the Bank Deposits Insurance Company on the last business day of September 2004, at the latest. Article 4: This Instruction shall enter into force as from the date of its signature. The Governor Mohammed LAKSACI
9 INSTRUCTION OF AUGUST 2 ND, 2004 RELATING TO CREDIT CARD STANDARDIZATION Article 1: The object of this Instruction is the standardization of the bank smart credit card issued by Banks and Algérie-Poste. Article 2: The Smart card shall meet the international standards EMV (Europay MasterCard Visa). The chip shall allow for payments transactions on electronic payment terminals. The track of the card shall allow for withdrawals on ATM (DAB abd GAB). Article 3: The standardization of the bank smart credit card shall cover the following: - standardization of marking and stamping areas, - encoding magnetic zones, - smart engraving The Card standardization shall be completed by minimal specifications of electronic payments terminals. Article 4: Stamping and marking areas shall be those reserved to plain customization and coded customization of information according to suitable methods. Article 5: Encoding magnetic tracks shall consist in recording on the magnetic tracks of the card, the coded information with specific equipment and logistics in accordance with international standards. Article 6: Chip etching, composed of a microprocessor and memory, shall record credentials of the card holder and issuer with specific equipment and logistics in accordance with the international standards in force for the electronic payments on payment terminals set up at acceptors.
10 Article 7: Home payment transactions shall only be authorized on EMV chip. The following cases shall be excluded: - fold on magnetic track in case of no chip - fold on manual transaction in case of no chip. Article 8: Electronic payment terminals shall be able to deal with payment smart cards in accordance with the EMV standard. Article 9: Technical elements relating to automatic processing of cash withdrawal and electronic payments relating to support, coding, encoding and etching of chip processes, features, information exchange protocols together with electronic payment terminals shall be defined within the (5) five appendixes attached to this Instruction:. Appendix 1: stamping and marking areas,. Appendix 2: magnetic areas encoding,. Appendix 3: chip etching,. Appendix 4: credit card configuration,. Appendix 5: general specifications of TPE logistic. Article 10: Withdrawals on ATM shall continue using the magnetic track for a temporary period of three years. At the expiry of temporary period mentioned above at the latest, the information recorded on the magnetic area shall be etched on the chip. Article 11: This Instruction shall cancel and replace Instruction of September 28 th, 1994 relating to credit card standardization. Article 12: This Instruction shall enter into force as from the date of its signature. The Governor Mohammed LAKSACI
11 APPENDIX 1 STAMPING AND MARKING AREAS Physical specifications of credit card shall be defined by the standard ISO/IEC Customization of credit card shall be carried out according to two processes: - Plain customization including marking and stamping, - coded customization that shall basically consist in encoding magnetic areas and chip etching. I.1 MARKING Marking shall be carried out in accordance with the international standards, during manufacturing the (smart card and magnetic card), and shall record the following elements:. Verso: (the inner left section) of the card, a code indicating the manufacturing workshop, serial number and lot number shall be printed;. Recto: (the bottom), the mention expires at the end together with arrow indicating the insertion way of the car in ATM and payment terminals shall be printed. I.2 STAMPING (EMBOSSING) DATA Stamping or embossing shall bring up relief characters on the card recto Recording or printing by stamping technique shall be defined within the standard ISO/IEC 7811 that specifies the characters I.2.1 Characters type The characters selected for stamping shall be of type: FARRINGTON 7 B: for the ID card number ROC-B (OCR-B): Capital letters alphanumeric of dimension 1 for stamping.the expiry date. Full names of customer. Incorporate name of the company
12 FARRINGTON 7B and OCR-B printing specifications shall be detailed in 1.3 I.2.2 Characters spacing Characters spacing shall be as follows: a) nominal spacing: 3,63 mm and 2,54 mm for characters visually readable; b) minimal spacing between two consecutive characters: 3,48 mm and 2,46 mm for characters visually readable. I.2.3 Characters height The maximum height on the surface of printing stamped characters taking into consideration the inclination of the central line and misalignment of characters shall be : 4,32 mm. I.2.4 Height of stamped embossed characters The height of characters stamped above the surface of the card shall be 0, 48 mm with tolerance of + or 0, 05 mm. Stamping data as card number, expiry date, full names of customer shall be recorded by embossed writing in the stamping area of the card, in accordance with the international ISO standards. I.3 STAMPING AREA Stamping area shall be located on the card bottom. It shall be constituted of four lines gathered into (2) areas which are: I.3.1 Area 1 It shall be constituted by (1) one line reserved for card number that identifies both its issuer and holder. This area shall be called ID number line the characters on which shall be the following:.character type: FARRINGTON 7B (figures from 0 to 9 included). length of the line: 65,34 mm (+ or 1 mm). number of characters: 16 figures distributed in blocks of 4.
13 * Dimension of characters:. Nominal height = 3, 81 mm; maximum = 5 mm,. Nominal width = 2, 03 mm; maximum = 3, 63 mm * Dimension of lines:. Nominal width = 0, 51 mm: Maximum = 0, 76 Minimum = 0, 25 * Spacing and alignment of characters:. Nominal spacing = 7 characters per inch. Minimum horizontal spacing between characters = 0, 38 mm,. Inclination of character = maximum 3 * Distance between the centre line and the line of the ID number and the bottom edge of the card: 21, 42 mm (+ or 0, 12 mm). *Distance between the centre line of the first position of the character and the left edge of the card: 10, 18 mm (+ or 0, 25). * Spacing between area 1 and area 2 = 3, 7 mm. * Shape of the card surface after stamping: shall not exceed 0, 13 mm. I.3.2 Zone 2 It shall be constituted of (3) three lines provided for to receive data identifying the holder (full name, incorporate name and address) and the expiry date of the card. *This area shall be called name and address area the specifications of which shall be the following:. Characters type: OCR-B (Alphanumeric),. Length of each line= 7, 65 mm,. Characters number: 27 characters,. Spacing between characters: 10 characters per inch. * Dimension of the area: Maximum height = 14, 53 mm (for the 3 lines) * Bottom margin between the area and the bottom edge of the card: Minimum = 2, 41 mm Maximum = 3, 30 mm * Distance between centre line of the first position of each line character in the left of the card = 7, 65 mm (+ or 0, 25).
14 APPENDIX II ENCODING MAGNETIC TRACKS The customization of magnetic track shall basically consist in the customization of track ISO 2. The card shall contain on the verso a strip covering (3) three tracks ISO 1, ISO 2, ISO 3. Specifications of magnetic material: areas and encoding technique shall be defined by the standards ISO/IEC 7811 from 2 to 5. It should be noted that these specifications are extremely important because they are taken into account by constructors of ATM in Hardware and Software plan. The encoding (writing on track ISO 2) shall be carried out with equipment and specific logistics in accordance with track description and with the ISO (reference ISO/IEC 7813 AND 7811) international standards. The installation of national credit card system, involving interoperability and inter-banking of ATM, shall require the standardization of informative content of various area ISO 2 networks. These standards content, relating to the system security, shall be held by the Automation Company of Inter-banking Transactions (SATIM), empowered Institution, and shall scrupulously be respected by all concerned parties.
15 APPENDIX III CHIP ETCHING The microcircuit card, commonly called smart card shall contain on the recto a chip that contains a microprocessor and memory. Specifications of chip and etching technique shall be defined by the ISO/IEC 7816 and EMV 2000 standards. Specifications EMV 2000 of smart card shall define: Electromechanical specifications, logical interfaces and transmission protocols used to exchange information between the card and the electronic payment terminal. These specifications shall be described in Book 1 Application Independent ICC to Terminal Interface Requirement of standard EMV * ICC Integrated Circuit Card.
16 APPENDIX IV CONFIGURATION OF THE CARD RECTO 85, 72 B C D all 54, (*) S3 S2 S1 All dimensions shall be given by millimetres (*) ID number S3: expiry date S2: Mr. Full name S1: incorporate name. Location of chip vis-à-vis the card : A : mm C : 19, 20 mm B : 19, 87 mm D : 28, 55 mm ID number or card number (PAN) shall be defined by ISO. It shall contain (3) three elements: IIN/BIN, CAN, and CONTROL KEY. * IIN/BIN (Issuer Identification Number / Bank Identification Number) It shall be the card issuer identification number (cardholder bank). It shall contain (6) six fixed positions. This number shall be required by the organism ISO that shall ensure its uniqueness for each issuer.
17 * CAN (Customer Account Number): It shall be the holder s identification number. It shall contain 9 digital positions indicating from left to right: (2) two positions to codify card products issued by issuers. The codification product shall be the same for all Banks and Algérie poste. (7) seven positions from (9 to 15) shall be a registration chronologic numbering of the holder. * CONTROL KEY It shall be the key that checks the card number. This key shall be extended on position (position 16). The control key shall be calculated on the basis of formula Luhn (computation algorithm)
18 APPENDIX V GENERAL SPECIFICATIONS OF EPT The electronic payment terminals (EPT) set up at acceptors (traders, large public utilities companies, ) shall be connected to the SATIM servers centre. They shall obey to SPDH protocol (Standard Point of sale Devise Handler), version 6.0 V4 that shall define the exchange messages between EPT and the server. EPT shall respect the ISO/IEC standard EPT can operate in two ways: Off line: transaction shall be carried out on the basis of the holder management parameters etched on the chip. On line: transaction shall be carried out with a request for authorization sent to the SATIM server when off-line thresholds are passed. Software set up on EPT shall ensure the processing of the following operations: - sale transactions, - sale transactions with tip, - withdrawal on EPT in a Bank branch, - reimbursement of sale transactions, - pre-authorization management. - Software set up on EPT shall allow for the processing of the list of cards in opposition
19 INSTRUCTION OF AUGUST 2 ND, 2004 RELATING TO BANK IDENTIFICATION Article 1: The object of this Instruction is to determine standards relating to Bank identification of Bank clients and any other Institution issuing payment instrument in accordance with the provisions of Regulation of June 2 nd, 1994 relating to management principles and standards Institutions in the Banking. Article 2: The standards defined by this Instruction shall be relating to standardization of the:. Bank account number granted to clients;. Bank account details. Article 3: The Bank account number granted to Bank clients and other institutions issuing payment instruments clients shall be composed of (20) digital characters essentially distributed in the following order:.3 characters for the bank code,.5 characters for the branch code,.10 characters for the client individual account number.02 characters for the control key of account number. The control key of the account number shall be generated by applying Modulo 97 method in appendix attached to this Instruction. Article 4: Bank code shall be granted by the Bank of Algeria to each Bank or to any other Institution issuing payment instruments. The Branch code shall be granted by any Bank or Institution issuing payment instrument to each branch; these numbers which are part of the referential for payment systems shall be notified to the Bank of Algeria The customers individual account number shall be granted to customers by the Bank or Institution branch issuing payment instruments that has proceeded with the account opening. It shall be a number granted according to unique procedure organized by the Bank avoiding granting several accounts of the same kind to customer.
20 Article 5: Bank account details (RIB) shall be a document gathering the necessary basic information to identify the customer. This statement shall be presented by the customer at any time that the banker or Institution issuing payment instruments wants to check his identity. Components of this Bank identity statement shall be the following:. full names or incorporate name of the account holder,. name of the institution or the domiciliary branch, Bank identity number composed of 20 digital characters imperatively structured in the order mentioned in Article 3 above. Article 6: The Bank account details as defined in Article 5 above shall represent the elements necessary for the settlement of scriptural payment instruments (paper or electronic support) Article 7: This Instruction shall cancel and replace Instruction of September 28 th, 1994 relating to Bank identification Article 8: This instruction shall enter into force as from the date of its signature. The Governor Mohammed LAKSACI
21 INSTRUCTION OF DECEMBER 30 TH, 2004 RELATING TO THE DECLARATION OF THE RATIO CALLED RATIO OF EQUITY CAPITAL AND PERMANENT RESOURCES BY BANKS AND FINANCIAL INSTITUTIONS Article 1: Pursuant to Regulation of July 19 th, 2004 setting the ratio called ratio of equity capital and permanent resources, the object of this Instruction is to specify certain items in the computation of the ratio and to define the models of such ratio statement by Banks and Financial Institutions of this report. Article 2: The resources deemed stable but without fixed maturities such as deposits on housing saving books shall be included in the ratio denominator up to 20% Article 3: Under nonperforming claims or doubtful claims, claims classified in the category of potential risk claims net of allowances shall be included in the ratio denominator up to 50%. Claims classified in categories of high risk claims and doubtful claims net of allowances shall be included in denominator ratio up to 100%. Article 4: The declaration of the ratio called ratio of equity capital and permanent resources shall be carried out yearly, on March 31 st of each year at the latest, according to the statement models attached in the appendix of this Instruction: - model 4001 relating to permanent resources - model 4002 relating to permanent uses Article 5: The yearly statements duly filled out shall be signed by the entitled manager under Article 90 of Order 3-11 of August 26 th, 2003 relating to Money and Credit. They shall be sent to the Commission Bancaire with a copy to the General Department for Researches of the Bank of Algeria. Article 6: This Instruction shall enter into force as from the end of the financial year The Governor Mohammed LAKSAC
22 APPENDIX I TO INSTRUCTION Model 4001 Institution subject. COMPUTATION OF RATIO OF EQUITY CAPITAL AND PERMANENT RESOURCES CLOSING DATE Day Month Year Wording Code Amounts STABLE RESOURCES I- Equity capital Capital Reserves Statutory reserves Contractual and statuary reserves Assessment difference Allowances for general Bank risks Financial year Profits Forward Premium to a new creditor Subordinate debts Sub-total Shall be deducted: Partly paid capital Loss of the financial year Operating tangible assets excluding right to lease Setting up costs Forward Premium to a new debtor Sub-total Basic equity capital (C=A-B) A B C
23 II-permanent resources Partners current accounts Obligatory borrowings issued (beyond 5 years) cash vouchers and saving bonds Customers time deposits(beyond 5 years) Housing saving booklet Other stable saving booklets borrowings surplus on Banks and Financial Institutions loans(beyond 5 years) TOTAL OF PERMANENT RESOURCES D TOTAL OF PERMANENT RESOURCES (E= C+D) 123 E
24 Appendix II To Instruction Model 4002 Institution subject. COMPUTATION OF RATIO OF EQUITY CAPITAL AND PERMANENT RESOURCES closing date Day Month Year STABLE USES Wording Code Amounts Net fixed assets depreciation and eventual allowances Equity and subsidiary securities (allowances net) Subordinated loan Potential risk claims ( allowances net) Other classified claims ( allowances net) Current claims ( beyond 5 years) Leasing ( beyond 5 years) Loans surplus on Banks and Financial Institutions borrowings ( beyond 5 years) Non marketable bonds Non- tradable shares TOTAL OF STABLE USES COMPUTATION OF RATIO OF EQUITY CAPITAL AND PERMANENT RESOURCES 5 g+ E/F) F 135 G