INSTRUCTIONS 2002
INSTRUCTION 01-2002 OF JANUARY 17 TH, 2002 FIXING THE REDISCOUNT RATE Pursuant to the Resolution of the Council of Money and Credit of January 17 th, 2002, the rediscount rate shall be fixed at 5, 5%. This Instruction shall repeal the provisions of Instruction 08-2000 of October 21 st, 2000 and shall enter into force as from January 20 th, 2002. The Governor Mohammed LAKSACI
INSTRUCTION 02-2002 OF APRIL 11 TH, 2002 RELATING TO THE INTRODUCTION OF LIQUIDITIES RECOVERY ON THE MONEY MARKET Article 1: Under the provisions of Articles 20 and 21 of Regulation 08-91 relating to organization of the Money Market, the object of this Instruction is to introduce the fixed-term deposit recovery, as an immediate invitation to bid. Fixed-term recoveries may be considered by the Bank of Algeria whenever it deems necessary. Article 2: The immediate invitations to bid shall be done within (2) hours between the invitation to bid advertisement and the distribution result notice. Article 3: The Bank of Algeria may invite Banks to place with it; liquidities as 24 Hours deposit or time deposit, paid at a fixed interest rate. The transaction mentioned above shall be carried out according to the terms set in appendixes: Appendix I- Timelines for implementing the operations; Appendix II- Announcement of fixed-term deposit recovery through invitation to bid Appendix III- Model of fixed-term deposit recovery through introduction of invitation to bid offer Appendix IV- Model of receipt message of fixed-term deposit recovery offer through invitation to bid; Appendix V- Model of fixed-term deposit recovery results message through invitation to bid. Article 4: Interest rate applied to deposits shall be a simple interest rate, calculated on the basis of actual number of days /360. Interest shall be paid at the deposit maturity date.
Article 5: Fixed-term deposit recovery shall be a specific intervention from the Bank of Algeria. Transaction frequency and deposit term shall not be standardized. At all times, liquidities recovery shall be carried out. It shall be decided in favour of Banks only. Article 6: The Bank of Algeria shall reserve the right to perform a liquidity recovery by using bilateral transactions. It shall also amend the recovery conditions or suspend the transaction. Article 7: This Instruction shall enter into force as from the date of its signature. The Governor Mohammed LAKSACI
APPENDIX I TIMELINE FOR IMPLEMENTING THE TRANSACTION Stage 1: First hour, announcement of a multiple or bilateral invitation to bid by the Bank of Algeria (by fax) Stage 2: First hour + 45 mn, preparation and submission of Banks offers Stage 3: Second hour, collection of offers by the Bank of Algeria. Stage 4: confirmation of offers receipt messages by the Bank of Algeria. Stage 5: Third hour, tender and announcement of results a) The tender decision of the Bank of Algeria b) tender results announcement c) Notification of the tender individual results d) transaction settlement.
APPENDIX II ANNOUNCEMENT MESSAGE OF FIXED-TERM DEPOSIT RECOVERY THROUGH INVITATION TO BID THE BANK OF ALGERIA Multiple or bilateral message Fixed-term recovery invitation to bid Value:..Maturity date Interest rate fixed at:. Limited hour to respond..on.. DIRECTOR OF MONEY AND FINANCIAL MARKETS
APPENDIX III ANNOUNCEMENT MESSAGE OF FIXED-TERM DEPOSIT RECOVERY THROUGH INVITATION TO BID Dear sir the Director of the Money and Financial Markets General Department of Credit and Bank Regulation BANK OF ALGERIA 38, Avenue Franklin Roosevelt- Algiers We do offer as follows: Concern: Bank.. Tender =..the proposed amount in millions of Dinars Interest rate fixed at: % Name, function and signature Responsible who shall commit the Bank
APPENDIX IV MODEL OF RECEPTION MESSAGE OF FIXED-TERM DEPOSIT RECOVERY OFFER THROUGH INVITATION TO BID Received this day, on at hour. Your offer amounting to million dinars for an interest rate fixed at.% DIRECTOR OF MONEY AND FINANCIAL MARKETS
APPENDIX V MODEL MESSAGE OF FIXED-TERM DEPOSIT RECOVERY RESULTS THROUGH INVITATION TO BID BANK OF ALGERIA. Recipient:. Fixed-term recovery through invitation to bid. Of (date) at hour. Total amount of introductive offers.millions Algerian Dinars. Interest rate fixed at.%. Allotment in lieu of.millions AD.. Allotment of your Bank millions AD. DIRECTOR OF MONEY AND FINANCIAL MARKETS
INSTRUCTION 03-2002 OF SEPTEMBER 23 RD, 2002 SETTING THE TERMS AND CONDITIONS OF FUND TRANSFER IN VIEW OF REALIZATION OF INVESTMENTS ABROAD AND REPATRIATION OF SUCH INVESTMENTS BY ECONOMIC OPERATORS UNDER THE ALGERIAN LAW Article 1: Pursuant to Article 9 of Regulation 01-2002 of February 20 th, 2002 setting conditions of an authorization application that shall allow economic operators under the Algerian Law to make investments and/or set up representative office abroad, the object of this Instruction is to set terms and conditions of fund transfer in view of the realization of investments abroad and repatriation of the proceeds of such investments. Article 2: Provided that the conditions provided for Articles 3 and 4 hereinafter are met, Banks and authorized intermediary Financial Institutions shall be entitled to carry out fund transfer transactions under the realization of investments abroad within the conditions and amounts provided for and granted for this purpose by the Council of Money and Credit. Article 3: This Instruction concerns investments realized abroad by the Companies under the Algerian Law and regularly performed (under the legislation and regulation in force), prior to the effective date of Law 10-90 of April 14 th, 1990 relating to Money and Credit, as amended and supplemented, together with investments abroad authorized by the Council of Money and Credit. Article 4: Transfer of fund by authorized intermediaries, provided for in Article 2 above shall only intervene upon the presentation of the following documents by economic operators under the Algerian Law: - application for transfer drawn up and signed by the entitled managing body, - authorization for making investment abroad granted by the Council of Money and Credit. Article 5: Subject to the host country s regulations, all proceeds (income and/or capital) resulting from investment abroad shall necessary lead to an effective repatriation in Algeria, on time.
Article 6: After closing each financial year, the Company under the Algerian Law, having made investments abroad, shall be compelled to communicate the following documents to the Bank of Algeria: - balance sheet and profit and loss account of the economic entity created abroad, certified by auditor and approved by the entitled body, for this purpose, - activity report of the same entity, - a comprehensive statement of the effective repatriation in Algeria of income generated by investments made abroad, supported by the corresponding Bank credit advices. Article 7: The Bank of Algeria (General Department of Exchange) may be contacted for any difficulty in the application of this Instruction, Article 8: This Instruction shall enter into force as from the date of its signature. The Governor Mohammed LAKSACI
INSTRUCTION 04-2002 OF SEPTEMBER 23 RD, 2002 DETERMINING THE TRANSFER TERMS AND CONDITIONS OF YEARLY ESTIMATE BUDGETS OF EXPENDITURES AND REPATRIATION OF RECEIPTS SURPLUS OF REPRESENTATIVE OFFICES ABROAD OF ECONOMIC OPERATORS UNDER THE ALGERIAN LAW Article 1: Pursuant to Article 9 of Regulation 01-2002 of February 20 th, 2002 setting the terms and conditions of making an application for authorization that shall allow economic operators under the Algerian Law to make investments and/or set up representative office abroad, the object of this Instruction is to determine the terms and conditions of transfer of yearly estimate budgets of expenditures and repatriation of receipts surplus of economic operators representative offices abroad under the Algerian Law. Under this Instruction, budget, shall mean the yearly estimate budget and, the complementary budget under the current financial year, as the case may be. SECTION I GENERAL PROVISIONS Article 2: Provided that the conditions stipulated in Articles 3, 4 and 5 hereinafter are met; Banks and authorized intermediary Financial Institutions shall be entitled to carry out funds transfer transactions under the budget of economic operators representative offices under the Algerian Law established abroad in a strict compliance with the provisions enacted hereinafter. Article 3: Only the economic operators representative offices under the Algerian Law, which have been set up abroad before the effective date of Law 10-90 of April 14 th, 1990 relating to Money and Credit, as amended and supplemented, as well as those authorized by the Council of Money and Credit, may be entitled to transfer their budget. Article 4: Upon the request of the concerned economic operator, through its domiciliary Bank, the Bank of Algeria (General Department of Exchange) shall draw up the list of representative offices abroad that may be entitled to transfer their budget. Such a list shall be considered as a transfer agreement that shall remain valid as longer as it has not been amended, suspended or totally or partially cancelled.
Article 5: The budget of the representative office abroad shall - prior to its domiciliation with Bank or authorized Intermediary Financial Institution be approved by the entitled managing authority of the Company concerned for implementation purpose, as provided for in section II hereinafter Article 6: The budget of the representative office abroad shall only cover the representative s office expenditures incurred in connection with the subject or activity of the economic operator, as provided for by its by-laws. Article 7: The credits recorded under the representative s office budget abroad, may be used only for hedging transactions for which they were opened. Credit appropriation of a budget item, which has totally or partially been unused for another item, shall only be allowed in cases of absolute necessity with prior approval from representative s office headquarters. The Bank domiciling the concerned budget shall be informed of such appropriation. SECTION II PROVISIONS RELATING TO DOMICILIATION AND TRANSFER TERMS Article 8: Prior to its implementation, the budget of the representative office abroad, duly approved by the entitled authority of the economic operator, shall be subject to a domiciliation with Bank or authorized intermediary Financial Institution. In this respect, the Bank or Financial Institution shall open a financial file entitled budget of the representative office abroad (economic operator s incorporate name) financial year.. Article 9: Besides the application for introduction; the domiciliation file shall include: - the decision of Council of Money and Credit relating to the authorization for setting up abroad the concerned representative office, or compliance, as the case may be; - the yearly budget duly approved by the entitled authority of the Company under the Algerian Law; - a declaration on the honour attesting that said file is not or shall not be domiciled with other Banks or authorized intermediary Financial Institutions and that the applicant has clearly noted that any other domiciliation shall constitute a prosecutable infringement of the exchange Regulation.
Article 10: Within the limits of the overall transferable amount fixed by budget, transfer transactions in favour of representative offices abroad shall be quarterly carried out and within the months preceding the beginning of the quarter concerned. Relevant documents shall be classified in the relevant financial file. SECTION III PROVISIONS RELATING TO REPATRIATION OF RECEIPTS SURPLUS Article 11: Subject to the host country s regulations, receipts generated by representative offices abroad, shall be repatriated, as soon as the latter record surplus assets. In any case, representative offices shall not have cash flow exceeding (3) three months expenditures. Article 12: Receipts surplus repatriated during the referred financial year shall be fixed by the yearly estimate budget, and their amount shall constitute a purpose which might possibly be exceeded. Article 13: The relevant documents of receipts surplus repatriation shall be classified in the corresponding financial file. Article 14: The concerned Company shall inform the Bank of Algeria (General Department of Exchange) of any difficulty in repatriating receipts surplus due to the relevant authorities of the host country in this field. SECTION IV PROVISIONS RELATING TO EXPENDITURES JUSTIFICATION Article 15: Under the quarterly expenditures justification incurred by the representative offices abroad and within the month that follows the closing of the concerned quarter, the summary including all relevant entries recorded in the accounts books of the representative office duly approved by the head of the latter and certified by the Financial Department of the Company s headquarters shall be directly sent to the budget domiciliary Bank.
Article 16: The budget domiciliary Bank shall inform the Bank of Algeria - (General Department of Exchange) of any serious irregularity revealed by the examination of the documentary evidence provided for Article 15 above - which shall take the required measures without prejudice to any proceedings that might be taken. SECTION V MISCELLANEOUS PROVISIONS Article 17: Banks domiciling budgets of Companies representative offices under the Algerian Law shall send a copy of each budget to the Bank of Algeria (General Direction of Exchange) at the opening of the financial file mentioned in section II above. Article 18: Transfers and repatriations achieved during each financial year, in execution of these budgets, shall be reported by domiciliary Banks to the Bank of Algeria (General Direction of Exchange) followed by a statement drawn up in accordance with the models attached in appendixes I and II. Article 19: At the closure of the referred financial year, the economic operators under the Algerian Law shall send a report drawn up by each of their representative offices abroad to the Bank of Algeria (General Direction of Exchange), in accordance with the model attached in appendix III. This report that shall be signed and approved by the Company s entitled authority, and shall be sent to the Bank of Algeria (General Direction of Exchange) within the first quarter of the next financial year for which it has been drawn up, accompanied with an activity balance highlighting the used means and the obtained results, as well as with their possible economic importance and the opportunity to further the mission of the representative office abroad. SECTION VI FINAL PROVISIONS Article 20: The Bank of Algeria (General Direction of Exchange) may be contacted for any difficulty in the application of this Instruction. Article 21: This Instruction shall enter into force as from the date of its signature. The Governor Mohammed LAKSACI
APPENDIX I The Bank or authorized intermediary Financial Institution Bank of Algeria General Department of Exchange 8, Bd ZIGHOUD Youcef- Algiers Budget of representative offices abroad Transfer carried out by During quarter 200. Date of transfer Amount in foreign currencies Cv /Dinars The concerned representative Algiers, on. (Accredited stamp and signature)
APPENDIX II The Bank or authorized intermediary Financial Institution Bank of Algeria General Department of Exchange 8, Bd ZIGHOUD Youcef- Algiers Budget of representative offices abroad Repatriation achieved by During quarter 200. Date of transfer Amount in foreign currencies Cv /Dinars The concerned representative Algiers, on. (Accredited stamp and signature)
Representative office:. APPENDIX III REPORT OF EXPOSED EXPENDITURES AND CASH SITUATION FINANCIAL YEAR 200. Exposed expenditures during the Cash situation financial year Items Amounts Recorded changed Amounts A/ - Functioning - consumed materials and supplies - services - staff costs - taxes miscellaneous cots S/Total: B/- Investments -layout -planning -equipment and office furniture -automotive equipment S/Total: Grand total -Assets on 12/31/. - costs payment of the previous financial year - Achieved incomings - headquarters change S/Total: S/Total: - costs payment of the financial year - headquarters change - Effective assets on 12/31/. - expenditures financial year appending payment Available assets S/Total: Representative office chief Company s entitled body
INSTRUCTION 05-2002 OF SEPTEMBER 23 RD, 2002 RELATING TO DETERMINATION OF THE PREMIUM RATE DUE UNDER THE CONTRIBUTION IN BANK DEPOSIT INSURANCE COMPANY Article 1: Pursuant to Regulation 04-97 of December 31 st, 1994 relating to 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, Premium rate due by Banks and foreign Banks branches operating in Algeria shall be fixed for the financial year 2001 at 0, 25 % of all deposits recorded on December 31 st of the same year, under their contribution in Bank Deposit Insurance Company, in accordance with the Resolution of the Council of Money and Credit of August 29 th, 2002. Article 3: Premiums shall be paid to Bank Deposit Insurance Company the last business day of October 2002, at the latest. Article 4: This Instruction shall enter into force as from the date of its signature. The Governor Mohammed LAKSACI
INSTRUCTION 06-2002 OF DECEMBER 11 TH, 2002 AMENDING INSTRUCTION 01-2001 RELATING TO THE RESERVE REQUIREMENT SYSTEM Article 1: The reserve rate mentioned in Article 4 of Instruction 01-2001 of February 11 th, 2001, as amended, relating to the reserve requirement system shall be fixed at 6,25% Article 2: The reserve requirement portion, constituted by credit balances of current accounts opened in the Bank of Algeria books mentioned in Article 8 of Instruction 01-2001 as amended, shall be paid at the rate of 2,5%. Article 3: This Instruction shall repeal and replace otherwise provided for Instruction 01-2001 as amended, relating to the reserve requirement system. Article 4: This Instruction shall enter into force as from December 15 th, 2002. The Governor Mohammed LAKSACI
INSTRUCTION 07-2002 OF DECEMBER 26 TH, 2002 AMENDING PROVISIONS OF INSTRUCTION 22-94 OF APRIL 12 TH, 1994 AS AMENDED, FIXING THE PERCENTAGE OF NON-HYDROCARBONS EXPORT RECEIPTS AND MINERAL PROCEEDS ENTITLING THE RECORD IN FOREIGN CURRENCY ACCOUNT (S) OF LEGAL ENTITIES Article 1: Article 2 bis of Instruction 22-94 of April 12 th, 1994 amended and supplemented by Instruction 03-98 of Mai 21 st, 1998, fixing percentage of nonhydrocarbons export receipts and mineral proceeds entitling the record in foreign currency account (s) of legal entities, shall be amended as follows: Article 2 bis: any amount in foreign currencies limited at 20%, out of the surrendered share of non-hydrocarbons export receipts and mineral proceeds actually repatriated mentioned in Article 2 above, may be used under the exporter s the discretion to promote his exports. Article 2: This Instruction shall enter into force as from the date of its signature. The Governor Mohammed LAKSACI
INSTRUCTION 08-2002 OF DECEMBER 26 TH, 2002 RELATING TO DECLARATION MODELS BY BANKS AND FINANCIAL INSTITUTIONS, AUTHORIZED INTERMEDIARIES, OF LEVEL OF THEIR FOREIGN LIABILITIES Article 1: The object of this Instruction is to adopt declaration models (canvas) by Banks and Financial Institutions, authorized intermediaries, of their level of foreign financial liabilities by signature, in accordance with the provisions of Instruction 20-94 of April 12 th, 1994 and 68-94 of October 25 th, 1994 setting, respectively, financial conditions of import transactions and foreign liabilities level. Article 2: Models to be attached to this Instruction are: 1. model 1000 (appendix 1) relating to equity capital computation; 2. model 3000 (appendix 2) relating to computation elements of foreign liabilities under import transactions; 3. model 3001 (appendix 3) relating to computation way of foreign liabilities level reported in equity capital; 4. description of components of net foreign liabilities under imports transactions (appendix 4) Article 3: Banks and Financial Institutions, authorized intermediaries shall fill out the models mentioned above and send them to the Bank of Algeria 15 days after the closing date, at the latest. Statement duly filled out shall be signed by one of the entitled managers under Article 135 of Law 10-90 of April 14 th, 1990 relating to Money and Credit, as amended, supplemented and regularly certified by the Governor of the Bank of Algeria. The monthly models mentioned above shall be sent in duplicate to the Bank of Algeria, General Department of General Inspection located in 8, boulevard ZIGHOUD Youcef Algiers. Article 4: This Instruction shall repeal any previous contrary provisions, namely, paragraph 2 of Article 5 of Instruction 20-94 setting financial conditions of import transactions and shall enter into force as from the date of its signature. The Governor Mohammed LAKSACI
APPENDIX I Model 1000 Equity Capital Computation on Unconsolidated Basis ( In thousands of dinars) Bank or Institution s name Declaring taxable closing date Day Month Year Wording Code Amounts I-Basic equity capital: Capital Other reserves than reassessment reserves Statutory reserves Contractual and statuary reserves accounts Regulated reserves Other reserves ( specify) Funds for general Bank risks Premium to a new creditor Profits settled at intermediary dates Retained earning of the closed previews financial year reduces dividends predicted for Income Sub-total 101 102 103 104 105 106 107 108 A Shall be deducted Partly paid capital Uncalled capital Capital stock according to Statutes and uncalled Own shares being held Operation plant and equipment (including setting up expenses) Off-operation plant and equipment Premium to a new debtor Negative income settled at intermediary dates Loss of the financial year Sub-total Basic equity capital (A-B) 109 110 111 112 113 114 115 116 117 B C
II-Complementary equity capital Reserves and differences of reassessment Elements meeting the conditions of Article 6, paragraph 2 of Instruction 74-94 of the Bank of Algeria (specify) Subordinate Securities and borrowings meeting the conditions of Article 6, paragraph 3 of Instruction 74-94 of the Bank of Algeria. Sub-total Subordinate Securities and borrowings meeting the conditions of Article 6, paragraph 5 of Instruction 74-94 of the Bank of Algeria. Part accepted in complementary equity capital If E <C2 take F=E; if E>C/2 take F=C/2 Total before the global limitation ( G=D+F) Part of complementary equity capital admitted in equity capital If G< C take H=G; if G>C takes H=C Complementary equity capital III- Deduction of subordinate investments and subordinate claims on Bank and Financial Institutions Investments in Banks and Financial Institutions Subordinate claims on Banks and Financial Institutions Total of subordinate part and debt on Banks and Financial Institutions (I+J) shall be deducted 118 119 120 121 122 123 124 125 140 141 142 D E F G H I J K Net equity capital (C+II - K) 143 P
APPENDIX IV I. DESCRIPTION OF COMPONENTS OF NET FOREIGN LIABILITIES UNDER IMPORTS TRANSACTIONS REFRRED IN INSTRUCTIONS 20-94 AND 68-94 Foreign liabilities, under transactions imports, shall include all liabilities by signature as follows: 1. Documentary credits (model 3001, code 331) Documentary credits to be declared shall include namely: - revocable documentary credits - irrevocable documentary credits - confirmed and irrevocable documentary credits 2. Guarantee (model 3001, code 332) Guarantees to be declared shall be those given by the Bank in order to guarantee the performance of conditions contracted by their clients under imports transactions. 3. Sureties (model 3001, code 333) Bank sureties to be included shall gather all sureties given by the reporting Institution to various economic agents under imports transactions. 4. Consents (model 3001, code 334) It is necessary to record all liabilities given by consent of reporting Institution under imports transactions. 5. Other liabilities (model 3001, code 335) This item shall report other foreign liabilities by signature under imports transactions excluded from one of the items mentioned above. II. DEDUCTIBLE ELEMENTS OF FOREIGN LIABILITIES BY SIGNATURE UNDER IMPORTS TRANSACTIONS Guarantee and allowances deposits constituted in AD (model 3001, column 2) They are allowances and guarantee deposits constituted in Algerian Dinars for, in an exclusive way, hedging foreign financial liabilities by signature under imports transactions referred to Instruction No 20-94.
INSTRUCTION 09-2002 OF DECEMBER 26 TH, 2002 SETTING DECLARATIONS BY BANKS AND FINANCIAL INSTITUTIONS OF THEIR SOLVENCY RATIO Article 1: Banks and Financial Institutions shall quarterly declare their solvency ratio. The Commission Bancaire may request any Bank or Financial Institution to declare its solvency ratio at other dates set by such according to the oversight requirements. Article 2: The models provided for Instruction 04-99 of August 12 th, 1999 relating to declaration models by Banks and Financial Institutions of hedging ratios and risks division shall be filled out on March 31 st, June 30 th, September 30 th, and December 31 st of each year. These declarations shall be sent in duplicate to the Bank of Algeria- General Department of General Inspection- within 30 days as from each of these periods Article 3: Pursuant to this Instruction; provisions of paragraph one of Article 13 of Instruction 74-94 of November 29 th, 1994 relating to the setting of management prudential rules of Banks and Financial Institutions and those of Article 3 of Instruction 04-99 of August 12 th, 1999 relating to declaration models by Banks and Financial Institutions of hedging ratios and risks division shall be repealed. Article 4: This Instruction shall be enter into force as from the date of its signature. The Governor Mohammed LAKSACI