Article 4: Any otherwise provisions shall be repealed, namely those of Instruction of June 23 rd, 2005.

Transcription

1 INSTRUCTIONS 2007

2 INSTRUCTION OF MARCH 14 TH, 2007 AMENDING AND COMPLEMENTING INSTRUCTION OF DECEMBER 30 TH, 2001 SETTING THE TERMS AND CONDITIONS OF ISSUE OF AIRLINE TICKETS AND TRANSFER OF RECEIPTS SURPLUS AS AMENDED Article 1: The object of this Instruction is to amend and complete Instruction of December 30 th, 2001 setting the terms and conditions of issue of airline tickets and transfer of receipts surplus, as amended. Article 2: Title 1, section II the issue of terms paragraph d of Instruction of December 30 th, 2001 setting the conditions of issue of airline tickets and transfer of receipts surplus shall be amended and completed as follows: d- in favour of associations and resident or non-resident natural persons on routes A exclusively located in Europe- Africa Middle East and Canada in the geographical sense, providing that the ticket shall only include one stopover between Algeria and the point of destination and vice-versa (technical stopovers unsubscribed on ticket shall not be taken into account).otherwise unchanged Article 3: Article 3 bis shall be added to Instruction of December 30 th, 2001 setting the terms and conditions of issue of airline tickets and transfer of receipts surplus, as amended and shall read as follows: ARTICLE 3 bis: Banks and authorized intermediaries shall be authorized to prepare and execute immediately the applications for transfer of receipts surplus on expenditures released by foreign airlines based in Algeria. The constitution of the relevant file shall be consistent with the provisions provided for this purpose by the Instruction mentioned in Article 1 above. Transfer of receipts surplus or repatriation, in case of deficit, shall be subject to a statement according to model 4 or 104, as the case may be. Article 4: Any otherwise provisions shall be repealed, namely those of Instruction of June 23 rd, 2005.

3 Article 5: The other un-amended provisions provided for by Instruction of December 30 th, 2001 setting the terms and conditions of issue of airline tickets and transfer of receipts surplus as amended, shall remain in force, namely those relating to the subsequent control of the Bank of Algeria, excepting those enacted by its paragraph IV- terms of transport- in its otherwise provisions. Article 6: This Instruction shall enter into force as from the date of its signature. The Governor Mohammed LAKSACI

4 INSTRUCTION OF MAY 31 ST, 2007 RELATING TO CURRENT TRANSACTIONS WITH FOREIGN COUNTRIES Article 1: Pursuant to Article 4 of Regulation of February 3 rd, 2007 relating to current transactions with foreign countries and to foreign currency accounts, the transactions hereinafter shall be considered as current transactions with foreign countries: - Foreign trade transactions on goods, accepted for import and export and duly declared. - Transport transactions *airline: chartering, receipts surplus, assistance and aeronautical fees and charges, refueling, lubricant and catering. - Charting transactions shall obey to the relevant Laws. - Transactions relating to receipts surplus shall be carried out under the Regulations applicable in this respect. * shipping line: chartering, supply and stopover accounts balance, ships repair and ships maintenance, ships and containers demurrage. Such transactions shall be carried out according to the terms and conditions provided for by shipping regulations. * road transport: any fee incurred by sending abroad any means of transport belonging to operators under the Algerian Law in order to carry out international trade transactions. * insurances and reinsurances: all transactions and liabilities contracted by the insurance companies under the Algerian Law. * financial services: commissions relating to foreign trade transactions, borrowings and other financial transactions. * travels: mission costs, travel allowance, health care abroad, tuition fees and pilgrimage, in accordance with the Regulation in force applicable to each operation.

5 * technical assistance and operations relating to production: Mounting, repair, startup processing, machining and connected activities Rental and maintenance of equipment and material; Building and public works, earthwork, architecture, drilling; Technical assistance relating to the company s activity under the Algerian Law including, namely, travels, experts and technicians interventions, manufacturing control, studies, vocational training and training; Industrial property rights (patents and production licenses); Management contract; Analysis technical and scientific expertise, audit and certificate of international standards (such as ISO standards); Rental of computer software and subscription of databases to Banks including computer training and equipments maintenance; Salaries and wages of foreign contractual staff, in accordance with particular provisions thereof; Rental of stands and exhibition areas at fairs and economic events abroad. * transactions relating to communication: Satellite operations right, postal services, communication and telecommunication services (roaming, international calls, internet) and facility maintenance thereof. * income: Interest on borrowings, dividends, profits, royalties and fees of attendance. * other current transactions: Cinematographic and audio visual operating fees, such transactions shall be subject to the presentation of operating visa issued by the administration for culture to support the corresponding domiciliation file; Re-broadcasting rights;

6 Costs relating to the participation in competitive examinations, rights of enrollment in Higher Education Institutions abroad; Contributions to international invitations to bid; scientific and professional organizations membership fees Court costs and lawyer fees; Conference attendance fees, seminars and symposia; Costs of registration abroad of patents, manufacturing processes and trade marks; Expenditures of representatives operators abroad under the Algerian Law, according to the legal regulation thereof; Subscription to scientific and technical periodicals; Receipts and costs of foreign diplomatic and consular representatives in Algeria. This Instruction shall not apply to other services import transactions initiated by operators under the Algerian Law intended to resale in the state and which are not relating to production activities in Algeria. Article 2: This Instruction shall enter into force as from the date of its signature. The Governor Mohammed LAKSACI

7 INSTRUCTION OF MAY 31 ST, 2007 RELATING TO THE STATEMENT AND FOLLOW UP PROCEDURE OF DOMICILIATION FILES OF FOREIGN CURRENT TRANSACTIONS WITH FOREIGN COUNTRIES Article 1: Pursuant to Regulation of February 3 rd, 2007 relating to the rules applicable to current transactions with foreign countries and foreign currency accounts, the object of this Instruction is to set the terms and conditions of statement of the domiciliation files position for import and export of goods and services and their discharge by Banks, Financial Institutions as authorized intermediaries. Article 2: Banks, Financial Institutions as authorized intermediaries shall be compelled to send to the Bank of Algeria (General Department of Exchange) or a monthly basis and within (2) weeks after the reference month, statements for opening and clearing domiciliation files as concerns export and import of goods and services, established, as the case may be, in accordance with the canvas mentioned hereinafter, attached in appendixes: - statement for opening domiciliation file to export and import of goods and services appendix 1 ; - statement of domiciliation file to import and export discharged goods and services appendix 2 ; - statement of domiciliation file to import and export sent un-discharged goods and services presenting, as the case may be, a settlement surplus position or repatriation insufficiency appendix 3. Article 3: The statements transmission, mentioned in Article 2 here above, shall be carried out by sending: - a paper base duly signed by the high ranking responsible of the Bank or Financial Institution, as authorized intermediary, or his representative duly mandated, and - an excel file on CD. Article 4: The statements provided for in Article 2 above shall concern import and export of goods and/or services transactions subject to such domiciliation.

8 Article 5: Import and export domiciliation files opened with counters of Banks and Financial Institutions, as authorized intermediaries presenting a surplus settlement or repatriation insufficiency for an amount equal or less than AD shall be declared to the Bank of Algeria and preserved by this latter, that shall diligently proceed with their discharge. The domiciliation files presenting a repatriation surplus or a settlement insufficiency shall be declared but preserved by the domiciliary counters for a subsequent discharge. Article 6: When the discharge prescribed period is exhausted, a copy of the domiciliation files presenting a settlement surplus or a repatriation insufficiency above the limits provided for in Article 5 above, shall be transmitted by the authorized intermediary to the Bank of Algeria (General Department of Exchange), within the month following the expiry of the validity of the concerned file. Article 7: The domiciliation file opened or not yet discharged at the effective date of this Instruction shall result in statements according to the canvas and support provided for in Articles 2 and 3 above, within the (30) thirty days after the enforcement of this Instruction. Article 8: This Instruction shall enter into force as from the date of its signature. The Governor Mohammed LAKSACI

9 INSTRUCTION OF JUNE 10 TH, 2007 RELATING TO THE CREATION OF A BANKING STABILITY FOLLOW UP COMMITTEE Article 1: A work team in charge of banking stability follow up shall be designated within the Bank of Algeria. Article 2: The Governor s decision shall define the composition, missions as well as the frequency of meetings of such team, namely, in terms of financial aggregates of the banking sector and economic conditions. Article 3: Provisionally, the General Department for Research of the Bank of Algeria shall ensure the follow up, with a report transmitted to the Governor about the development of the banking stability indicators. The Governor Mohammed LAKSACI

10 INSTRUCTION OF JUNE 11 TH, 2007 AMENDING AND COMPLETING INSTRUCTION OF MAY 31 ST, 2007 RELATING TO CURRENT TRANSACTIONS WITH FOREIGN COUNTRIES Article 1: The last paragraph of Article 1 of Instruction of May 31 st, 2007 relating to current transactions with foreign countries shall be amended to read as follows: This instruction shall not apply to services import transactions initiated by operators under the Algerian Law, intended to resale in the state and not relating to production activities in Algeria. Article 2: This Instruction shall enter into force as from the date of its signature. The Governor Mohammed LAKSACI

11 INSTRUCTION OF JUNE 11 TH, 2007 RELATING TO THE INTEREST RATE APPLICABLE TO THE REMUNERATED DEPOSIT FACILITY Article 1: Under the provisions of Article 4 of Instruction of June 14 th, 2005 relating to the deposit facility the interest rate shall be fixed at 1%. Article 2: This Instruction shall enter into force as from June 12 th, The Governor Mohammed LAKSACI

12 INSTRUCTION OF AUGUST 5 TH, 2007 RELATING TO THE DETERMINATION OF THE PREMIUM RATE DUE UNDER THE PARTICIPATION IN THE BANK DEPOSIT INSURANCE FUND Article 1: Pursuant to Regulation of Moharram 12 th, 1425 corresponding to March 4 th, 2004 relating to the Bank Deposit Insurance System, the object of this Instruction is to fix the premium rate that Banks and foreign banks branches operating in Algeria shall pay. Article 2: Pursuant to the Regulation mentioned in Article 1 above, the premium rate due by Banks and foreign banks branches operating in Algeria shall be fixed for the financial year 2006 at 0, 25% of all the deposits recorded up to December 31 st, 2006, under their participation in the Bank Deposit Insurance System in accordance with the Resolution of the Council of Money and Credit of July 31 st, Article 3: Premiums shall be deposited at the Bank Deposit Insurance Fund on the last business day of September 2007, at the latest. Article 4: This Instruction shall enter into force as from the date of its signature. The Governor Mohammed LAKSACI

13 INSTRUCTION OF OCTOBER 24 TH, 2007 RELATING TO THE CREATION OF A STUDY AND STEERING COMMITTEE FOR PREPARING THE REGULATORY FRAMEWORK RELATING TO THE FINANCIAL ACCOUNTING SYSTEM OF BANKS AND FINANCIAL INSTITUTIONS Article 1: Under the setting up of a new financial accounting system, a study committee in charge of the preparation of a regulatory framework relating to the financial accounting system of Banks and Financial Institutions shall be created in the Bank of Algeria. Article 2: The Governor s decision relating to the setting up of such a committee shall define its composition, duties and the works schedule in line with the promulgation of laws and regulations. Article 3: Provisionally, the General Department of General Inspection and the General Direction for Research of the Bank of Algeria shall follow up the legal regulatory framework relating to the National Financial Accounting System The Governor Mohammed LAKSACI

14 INSTRUCTION OF OCTOBER 25 TH, 2007 AMENDING AND COMPLETING INSTRUCTION OF NOVEMBER 29 TH, 1994 RELATING TO THE SETTING UP OF MANAGEMENT PRUDENTIAL RULES OF BANKS AND FINANCIAL INSTITUTIONS Article 1: The object of this Instruction is to amend and complete Instruction of November 29 th, 1994 relating to the setting up of Management Prudential Rules of Banks and Financial Institutions. Article 2: Article 2 of Instruction No mentioned above shall be completed by Article 2 bis reading as follows: Article 2 bis: the acquisition cost of fixed-income securities, meeting the provisions of Article 5 of Regulation 01-97of February 8 th, 1997 relating to securities transactions accounting, shall not be added to the risks incurred for the company issuing such securities or for the group to which this company belongs to in accordance with the definition of the group mentioned above in Article 2 of Instruction No 74-94, for the assessment of the risks division ratio of the company or the concerned group. In case the acquisition cost of fixed-income placement securities meeting the provisions of Article 9 of Regulation No mentioned above is above or equal to 10% of equity capital of the concerned Bank or Financial Institution, it shall be added to the risks incurred on the company issuing such securities or the group to which the company belongs to in accordance with the definition of the group mentioned in Article 2 of Instruction 74-94, for the assessment of risks division ratio. The acquisition cost of investment securities meeting the provisions of Article 13 of Regulation No mentioned above, shall be added to the risks incurred on the company issuing such securities or the group to which such company belongs to in accordance with the definition of the group mentioned in Article 2 of Instruction No 74-94, for the assessment of the risk division ratio of the concerned company or group.

15 Article 3: Article 2 of Instruction mentioned above shall be completed by Article 2 bis 1 reading as follows: Article 2 bis 1: credits granted to finance the execution of projects by the technique called project financing shall not be added to risks incurred on shareholders of entities created to carry out projects, provided that there shall not be mutual guarantees between shareholders and the created entity. In case of any difficulty in the classification of the credits files in the category of project financing files, the concerned Banks and Financial Institutions shall seek the Commission Bancaire advice. Article 4: Article 11 of Instruction of November 29 th, 1994 mentioned above shall be completed as follows: Article 11: The incurred risks.unchanged a) weight rate at 100% unchanged; a 1 reading as follows shall be inserted after: A 1) weight rate of 50% * loans granted to acquire houses, which are or shall be occupied or rented by the borrower, fully secured by the first mortgages, provided that loans shall present an amount equal or less than 70% of the mortgaged value of acquired goods. Otherwise, the applicable weight rate shall be 100%. * leasing real estate provided that loan shall not exceed 50% of the mortgaged value of the real estate. Otherwise, the applicable weight rate shall be 100%. Otherwise, (b and the following) unchanged. Article 5: This Instruction shall enter into force as from the date of its signature. The Governor Mohammed LAKSACI

16 INSTRUCTION OF NOVEMBER 7 TH, 2007 RELATING TO THE EXPORT AND IMPORT OF ALGERIAN BANKNOTES Article 1: Pursuant to paragraph 2 of Article 6 of Regulation of February 3 rd, 2007 relating to the Rules applicable to current transactions with foreign countries and to foreign currency accounts, any resident traveller shall be authorized to export and import Algerian banknotes, within the limit of an amount of (AD 3000) three thousand Algerian dinars. Article 2: Any Otherwise provision shall be repealed. The Governor Mohammed LAKSACI

17 INSTRUCTION OF DECEMBER 23 RD, 2007 SETTING THE CONDITIONS FOR THE CREATION OF BANK AND FINANCIAL INSTITUTIONS AND THE SETTING UP OF FOREIGN BANKS AND FINANCIAL INSTITUTIONS BRANCHES Article 1: Pursuant to Regulation of September 24 th, 2006 setting the conditions of the Bank and Financial Institution and the setting up of foreign Bank and Financial Institution branches, and to Regulation of March 22 nd, 1992 relating to the conditions that founders, managers and representatives of Banks and Financial Institutions shall meet, the object of this Instruction is to determine the assessment and information elements of the file attached to the application for the establishment authorization and the application for approval of Bank and Financial Institution and/or the setting up of foreign Bank and Financial Institution branches. APPLICATION FOR AUTHORIZATION TO INCORPORATE Article 2: To obtain the Council s of Money and Credit authorization to create a Bank or a Financial Institution or to set up a foreign Bank or Financial Institution branch, promoters shall present a file in (7) seven copies including the questionnaires answers IN appendixes I to V of this Instruction with the support of the application for authorization. Such questionnaires shall include the specific assessment and information elements relating, namely, to the capacity and respectability of the promoters and theirs guarantors, to the list of the main managers, financial and technical capacities together with the activity schedule. Article 3: Promoters shall be compelled, with the support of the application for authorization mentioned in Article 2 above, to send to the Governor of the Bank of Algeria, the President of the Council of Money and Credit, an commitment letter of the capital providers according to the model in appendix III of this Instruction, certifying on the honour the truthfulness of the provided information and in which they undertake to notify any major change of said information. Promoters shall also undertake provide each year any financial information that the Bank, Financial Institution or foreign Bank or Financial Institution branch shall be compelled to transmit to the Bank of Algeria and to be subjected to the provisions mentioned in Article 99 of Order of August 26 th, 2003 relating to Money and Credit.

18 APPLICATION FOR EMPOWERING MANAGERS Article 4: Banks, Financial Institutions and foreign Bank or Financial Institution branches and managers of representative offices of Banks shall, before taking on their duties, obtain the approval of the Governor of the Bank of Algeria. Managers subject to the approval of the Governor of the Bank of Algeria, under this Instruction, shall be: a) Members of the legislative body, the Executive Board and/or Supervisory Board, as the case may be; b) Besides the President of the Executive Board, one person at least among those having the highest responsibility in the Bank or Financial Institution; c) Members of the Board of Directors including the President acting in such capacity, in case of Banks and Financial Institutions with a Supervisory Board; d) Managing Director and one person, at least, among those with the highest responsibility appointed by the empowered authority of the Banks and foreign Financial Institution branches head office; e) The appointed person for the management of the representative office designated by the empowered authority of the head office. Article 5: The manager s application for approval shall be supported by the concerned person s file. It shall be sent to the Governor of the Bank of Algeria by the Bank or Financial Institution. Article 6: The file mentioned in Article 5 here above shall include information enabling to assess that the concerned person meets the conditions provided for in the mentioned Regulation in force, namely those relating to: - his civil status; - his respectability; - his professional experience; - his qualifications; - the status of the resident in Algeria for both responsible managers under Article 90 of Order of August 26 th, 2003 relating to Money and Credit.

19 The file mentioned in the paragraph above shall include, namely: - a questionnaire duly filled out, the model of which shall be in appendix IV with supporting documents; - a commitment letter the model of which shall be attached to appendix V; - a charter of powers of each manager mentioned in paragraph (b),(c),(d), and (e) of Article 4 mentioned above. Such powers shall be defined by the legislative body, for Banks and Financial Institutions and by the entitled authority of the head office for foreign Banks and Financial Institutions branches and representatives. - a police record No 3, or an equivalent document for foreign nationals, as the case may be. Article 7: The Governor of the Bank of Algeria shall be informed of any change of the information contained in the manager s file under Article 4 above. Article 8: Banks and Financial Institutions shall be compelled to inform the Governor of the Bank of Algeria of any change affecting the composition of the Executive Board, Supervisory Board or the Board of Directors together with the reason for such. Article 9: The Governor of the Bank of Algeria shall immediately be informed of the dismissal of any manager mentioned in paragraphs (b), (c), (d) and (e) of Article 4 above and of the reason of such. Article 10: The Governor of the Bank of Algeria may withdraw approval of any Manager mentioned in Article 4 above without prejudice to administrative and/or legal proceedings, if such manager: - no longer meets the legal conditions, namely those provided for by Article 80 of Order of August 26 th, 2003 and those provided for in the Commercial Code relating to the managers of the companies; - infringes one of the Provisions of Order of August 26 th, 2003 namely those provided for in Articles and 104; - no longer meets good respectability and/or moral requirements; - is subject to a heavy professional misconduct

20 APPLICATION FOR APPROVAL Article 11: Promoters having obtained the authorization provided for in Article 2 above shall have (12) a maximum deadline of twelve months to require from the Governor of the Bank of Algeria the approval authorizing the Bank and Financial Institution to completely carry out its activities Article 12: In support of the application for agreement mentioned in Article 11 above, Bank or Financial Institution founders or foreign Bank or Financial Institution branches promoters shall deliver a file in (7) seven copies including the: 1- commitment letter approved by the General Meeting of shareholders, signed by the President of the legislative body of the Bank or Financial Institution, the model of which shall be in appendix VI of this Instruction; 2- original copy of statutes and shareholders association established by a deed drawn up by a solicitor or a true certified copy of statutes of the head office( as far as Bank or foreign Financial Institution branch) are concerned; 3- certified copy of the Trade Register; 4- certified copy of fiscal existence statement established at the Tax Office of the headquarters; 5- certificate of full discharge of the minimum capital or the portion of capital when it exceeds the minimum capital or the endowment with the solicitor, certified photocopy of receipt of actual payment in a Bank account; 6- certificate of repatriation of foreign currencies for non-resident shareholders; 7- original copy of the report relating to the value of contributions in kind made by the commissioner for contributions; 8- minutes of the General Meeting relating, in particular, to the election of its President, or the minutes of meeting of the Supervisory Board relating to the appointment of members of the Board of Directors and its

21 President, or the minutes of the Executive Board of the Bank or foreign Financial Institution relating to the powers granted to branch managers, 9- minutes of the Ordinary General Meeting relating to the appointment of the members of the deliberative body or Supervisory Board, minutes of the meeting of the deliberative body of the head office appointing (2) persons at least responsible for the branch s activity; 10- the approval by the Governor of the Bank of Algeria of the members of the legislative body, and of the person (s) responsible for the branch management; 11-minutes of the meeting of the deliberative body relating, namely, to the election of its President and appointment of the Managing Director(s); 12-true certified copy of the property deed or lease of promises which are to house the headquarters of Bank or Financial Institution with the address and phone number/fax; 13-Statement of property holdings drawn up by the solicitor for the capital providers (natural persons). Article 13: Bank or Financial Institution founders together with the managers of foreign Bank or Financial Institution branch shall also deliver a detailed study of the implementation of the project reporting namely, the: - Institution organization chart with the relevant areas of competence devolved to central structures; - Identification and position of executives with their resumes, - Institution organization chart, - Outline of the institutional development, - Presentation of management procedure system, - Blueprint of supervisory function of all Banking transactions; - Conditions supporting the account plan - Conditions of implementation of the IT tools. - Conditions supporting the internal control; - Conditions of the legislative and regulatory system to fight money laundering and financing terrorism. Article 14: This Instruction shall enter into force as from the date of its signature The Governor Mohammed LAKSACI

22 APPENDIX I INFORMATION TO BE PROVIDED BY PROVIDERS OF CAPITAL THE INFORMATION SHALL BE PROVIDED BY ANY PERSON WITH A VOTING POWER 1. Name, corporate name of the Bank or Financial Institution for which such information shall be provided. 2. Identity of providers of capital - if it is a legal entity, also mention the corporate trade name, legal form, address of the head office and its permanent representative if it is member of the deliberative body; - if it is a natural person, mention the first name, last name, date and place of birth, nationality, address and statement of property holdings Specify whether he has been approached as a manager of the future Bank or Financial Institution. 3. What are the contribution amount and percentage and their equivalent in voting right? Accurately describe the legal and financial transaction of the securities acquisition. 4. What is the activity of the provider of capital? If he is a member of a group provide the group description and mention the capital geography with percentages of share holdings and of voting rights. 5. Mention the main managers of the capital providers if it is a legal entity. 6. What is the capital allocation of the providers of capital and if it is a member of the group, the capital of the parent? Provide the balance sheets and statement of income of the (3) three last financial years of the parent with the identification of the shareholders, shares and voting rights. 7 Does the provider of capital make significant contributions in other Banks or Financial Institutions?

23 Does the group to which he belongs make significant contributions in Banks or Financial Institutions? If so, give the list of such contributions and their amount. 8. Do the provider and his associated companies carry out a financial activity? If so, to which authority are they responsible to in such capacity? 9. During the last ten years, did the provider of capital be subject to any investigation, administrative, professional or legal major procedure? Up to his knowledge, did any company of his group find itself in such situation? Eventually, did such investigation or procedure lead to any sanction? 10. Is or does the provider of capital expect to be in the near future subject to any administrative, legal or amicable procedure which might affect his financial situation? Up to his knowledge, is any company of his group in such situation? Give all relevant details. 11. To which objectives does the equity investment meet in the Bank or Financial Institution, what effects is expecting the provider from such? Give all relevant details. 12. Are there any significant business relationships between the provider of capital and the Bank or Financial Institution? How shall such relationships evolve in the future? 13. What are the main provider s bank relationships? Specify the seniority of such relationships. 14. The following shall be assimilated to the voting rights held by any provider:. The voting rights held by other persons on his behalf.. Specify the identity of these persons.. The voting rights held by companies under his effective control. Specify the identity of these persons.. The voting rights held by a third person with whom he makes transactions. The voting rights that the provider of capital or the other persons mentioned above shall be entitled to acquire on their own initiative under an agreement. Precisely mention any agreement existing in this respect. 15. Did the provider of capital pledge any of these shares with the Bank or Financial Institution? If so, specify the recipient(s).

24 16. Communicate the provider s accounts if it concerns a legal entity and/or the parent ones for the three previous years and a forecast for the current year (including consolidated data as the case may be). Communicate its bay-laws as well. If the provider is a financial institution, give the information of the main ratios of the balance sheet and provide the activity reports of the last (3) three financial years. 17. Information relating to the reference shareholder: Classification of the entity on the banking center of the country where the activity is carried out (local rating, and/or an international rating agency for the last (3) three financial years); Indicators of the financial soundness of the shareholding entity for the last (3) three financial years 18. Provide any additional information that might be relevant to the Bank of Algeria.

25 APPENDIX II DESCRIPTION OF AN INCORPORATION PROJECT OF A BANK, FINANCIAL INSTITUTION OR FOREIGN BANK OR FINANCIAL INSTITUTION BRANCH (BUSINESS PLAN) DESCRIPTION OF THE ENTITY 1. Name, or proposed corporate name and address of the head office, tel/fax of the branch in Algeria if it concerns a foreign company. 2. Legal form and statutes projects 3. Nature of the securities representing the capital, connection between the holding of such securities and the exercise of the voting rights. 4. The capital amount to be constituted, (number and nominal value of shares) or the endowment amount for foreign Banks or Financial Institutions branches 5. Agreements existing between shareholders acting to direct the institution s policy. 6. Managers identity: 6.1. Identity of two resident managers, at least, who are to ensure the effective determination of the company s activity and the responsibility of the management in accordance with Article 90 of Order of August 26 th, 2003 relating to Money and Credit Identity of the members of the deliberative body (members of the Executive Board and/or Supervisory board).

26 The appointed managers shall provide all relevant information including a detailed resume allowing for the assessment of the professional experience, and the shareholders capacity as administrator and deliver a police record, birth certificate, a copy or scanned version of the ID card, with an attached questionnaire duly filled out in appendix IV. Concerning foreign managers who have been residing for less than three years in Algeria, the police record shall be replaced by a document issued by the proper authorities of their country of origin and certifying that concern shareholders are not, under the regulation of their country, prohibited to manage a Bank or a Financial Institution. Such information shall be complemented by a statement according to the model in appendix V certifying that none of these persons shall fall under the prohibitions set forth in Article 80 of Order of August 26 th, 2003 relating to Money and Credit. 7. The identity of (2) two or more members of the approached auditors. DESCRIPTION OF THE PROJECTED ACTIVITY: 8. Projected hypothesis elements: 8.1 Nature and volume:. Different types of grants (credit, leasing, guarantees, others ) appearing in both balance and off-balance sheets, 8.2. Other services offered to customers (the availability of means of payment, property holding management, financial engineering) 9. composition of customers:. Individuals, companies, institutional investors other than those that the Bank or Financial Institutions intends to approach.. Customers approach strategy ( creation of counters, others ) 10. Nature of used resources:. Respective portions of equity capital, shareholders grants marketable or bonds securities, public deposits, borrowings for the inter-banking market ) 11. Evolution of the staff liable to be employed during the future five years and the corresponding payroll distributed annually by category of staff and breakdown according to the head office/ agency. Possibly, employee incentive arrangements with respect to the results and training actions planned for agents.

27 12. Organization of means provided for, namely with respect to the: - Network development (implementation program), - Legal status of head office and counters (property and renting), - Accounting and computing equipments, - Internal control: - Organization provided for the implementation of Regulation Methods of setting internal limits for various types of risks, - Device for the fight against money laundering and financing of terrorism ( pursuant to Regulation of September 15 th, 2005). 13. Balance and off -balance sheets and statement of income for the next five years. Projected level of main ratios of management at the end of each financial year (risks hedging, Division of risks, liquidity, coefficient of equity capital and permanent resources, profitability ) - Investments chart, - Allowances table, - Depreciations table. 14. Justification of the nature of the requested authorization: Bank or Financial Institution.

28 APPENDIX III LETTER TO THE GOVERNOR OF THE BANK OF ALGERIA BY PROVIDERS OF CAPITAL WITH THE INFORMATION LISTED IN APPENDIX I To the attention of the Governor Dear sir, I have the honor to send you, herewith, any information requested under the equity investment that (name of the provider of capital) ) that (name of the Bank or Financial Institution or foreign Bank or Financial Institution branch).seeks to achieve in the capital of I hereby certify that such information is true and faithful and that there is not, up to my knowledge, any other important fact worth mentioning. I am committed to immediately inform the Bank of Algeria of any significant change in the provided information. Moreover, I am also committed to provide, annually, to the Institution (name of the liable Institution), with whom company (name) is associated or shareholder or with whom I am shareholder, the financial information that such institution is expected to transmit to the authorities according to the Regulations in force. I understand that the Governor of the Bank of Algeria may call shareholders or members of any Bank or Financial Institution to provide this latter with the necessary support when the situation proves it, in accordance with the provisions of Article 99 of Order of August 2003 relating to Money and credit. Yours faithfully,

29 APPENDIX IV INFORMATION TO BE PROVIDED BY THE MANAGERS OF ANY BANK OR FINANCIAL INSTITUTION AND THE BRANCH OR REPRESENTATIVE OFFICE OF ANY FOREIGN FINANCIAL INSTITUTION Such information shall be provided by any natural person called to take up his duties in the capacity of manager under Article 4 of this Instruction in any Bank or Financial Institution or in any branch or representative office foreign financial institution or 1- Name, address of the Bank or Financial Institution or the branch for which you should be approached as a manager 2- Your civil status* - Full name - Date and place of birth - Nationality - Personal address - Address after taking office 3- Title and nature of your functions: (Mention the extent of your leadership responsibilities and terms of your association with other functions entrusted to other managers under Article 90 of Order of August 26 th, 2003 relating to Money and Credit. 4- Qualification and experience (resume): - Training courses and degrees obtained (date and place)* - Duties undertaken with the name, place and nature of the employer(s) activity and reasons of changes; - level of responsibilities assumed with each employer mentioning the total amount of the balance sheet, managed capitals, budget and staff )* - Type of the experience 5- Are you a major ** shareholder within the Institution mentioned in 1 above? If so, have you provided the information required from providers of capital? 6-If you were or you are a major shareholder, an associated in name or general partner of any company other than that mentioned in 1 above, specify the

30 name and activity of each said companies and the amount of your equity investment ( value and percentage). 7- Among the companies where you assumed (during the last five years) responsibilities, specify those having important business relationships with the Institution mentioned in 1 above. 8- If you have been subject to a professional dismissal, give all relevant details. 9- If you have been subject to investigation or administrative, professional or legal proceedings that resulted in sanctions, as part of your business in Algeria or abroad, give all details. 10- Give any other relevant additional information for the establishment of such application. Signature of the concerned person. N.B:* provide supporting documents- degrees and work certificates. ** shall be considered as the major shareholder the shareholder holding at least 10% of the voting rights or of the capital of Bank or Financial Institution.

31 APPENDIX V A STATEMENT MODEL SHALL BE TRANSMITTED TO THE GOVERNOR OF THE BANK OF ALGERIA IN HIS CAPACITY AS PRESIDENT OF THE COUNCIL OF MONEY AND CREDIT To be appointed as a Manager of (the Bank or Financial Institution ) to take the duty of.as from. I hereby certify that all the information I provide to support my application for approval are true and faithful. I hereby certify, in particular, not falling under the prohibitions set forth in Article 80 of Order of August 26 th, 2003 relating to Money and Credit and that in general, I ignore any other important facts worth mentioning. I am committed as well to inform my Institution of any change or new fact worth mentioning. First name: Last name Address: Signature of the concerned person

32 APPENDIX VI A COMMITMENT LETTER OF THE PRESIDENT OF THE DELIBERATIVE BODY Dear Mr. Governor, Considering the separation between the positions of President of the deliberative body (specify the nature of the body) and Managing Director and autonomy that should characterize each of them in the exercise of banking in order to achieve the social objective, I am hereby committed in my capacity as President of the Council.of the Bank, to: 1.create the necessary conditions to ensure sound and prudent management of the Bank in all circumstances, to complete all tasks, to meet all the obligations set forth by the legislation and Regulation in force; 2. act within the limits conferred on me by the Bank statutes; 3. Strictly observe the missions of the Managing Director of the Bank as adopted by the entitled body of the latter; 4. Ensure strict application of the decisions adopted by said bodies. Very Truly Yours, The President of the Council of. Note: The commitment shall be approved by the General Assembly.

33 INSTRUCTION OF DECEMBER 24 th, 2007 RELATING TO THE INTEREST RATE APPLICABLE TO THE REMUNERATED DEPOSIT FACILITY Article 1: In accordance with the provisions of Article 4 of Instruction of June 14 th, 2005 relating to the remunerated deposit facility, the interest rate applicable to the remunerated deposit facility shall be fixed at 0,75%. Article 2: This Instruction shall enter into force as from December 25 th, The Governor Mohammed LAKSACI

34 INSTRUCTION OF DECEMBER 24 th, 2007 AMENDING AND COMPLETING INSTRUCTION OF MAY 13 TH, 2004 RELATING TO THE RESERVE REQUIREMENTS SYSTEM Article 1: The object of this Instruction is to amend and complete Instruction of May 13 th, 2004 relating to the reserve requirements system. Article 2: Article 3 of Instruction of May 13 th, 2004 relating to the reserve requirements system shall be amended to read as follows: Article 3: the reserve requirements rate shall be fixed at 8% of the reserves base determined in Article 2 here above. Article 3: This Instruction shall enter into force as from January 15 th, The Governor Mohammed LAKSACI