Chapter

Ivory Coast

Author(s):
International Monetary Fund
Published Date:
June 1985
Share
  • ShareShare
Show Summary Details
Author(s)

Street scene in Abidjan, capital of Ivory Coast

Courtesy Wide World Photos

IVORY COAST

Financial System of Ivory Coast

Introduction

Formerly part of French West Africa, Ivory Coast gained independence in 1960. The country is a Republic with a presidential system of government, a National Assembly, and an independent judiciary. It is a member of a number of regional organizations, including the West African Monetary Union, described below, the Council of the Entente, the West African Economic Community (ceao)—as well as the widermembership Economic Community of West African States (cedeao).

At the coast Ivory Coast’s climate is equatorial, becoming progressively drier farther inland. This variation enables a relatively wide range of crops to be produced for both local and export markets. The main export products are coffee, cocoa, tropical hardwoods, bananas, pineapples, cotton, palm oil, and rubber. The first three products, in processed and unprocessed form, account for three fourths of Ivory Coast’s total exports. The natural resources of the country are primarily agricultural, although oil has been found offshore, and there are small diamond workings. Deposits of iron ore and manganese are at present unexploited.

The Economy

Since independence, the Ivorian economy has grown very rapidly; in spite of a high rate of population growth, real per capita income has increased by 4 per cent per annum on average and, at SDR 978 in 1980, gross domestic product (gdp) per capita is now the highest in West Africa. While all sectors of the economy have contributed to this expansion in output, the export sector has been the main stimulus to growth. The growth in agricultural exports has been made possible by an abundant supply of labor, particularly of migrant workers, the availability of large areas of suitable, though ecologically fragile, land, and government policies providing high and stable producer prices. Investment has also risen sharply both in absolute terms and as a proportion of GDP, reaching 28 per cent of GDP in 1980, compared with 13 per cent of GDP in 1960. The public sector has invested heavily in diversifying agricultural production with particular emphasis on palm oil, sugar, and rubber. Private investment has been concentrated mainly in manufacturing, construction, and services. Investment has been financed from both a high level of local saving and substantial capital inflows encouraged by liberal exchange policies and tax incentives.

Ivory Coast’s success in promoting such a rapid rate of economic development has been achieved in spite of a number of serious problems which typically face economic policymakers in developing countries. The most important problem has been sharp fluctuations in income from year to year reflecting both the impact of the weather on agricultural production and changes in world prices for primary commodities. These fluctuations in income and the terms of trade inevitably have been reflected in Ivory Coast’s balance of payments. However, Ivory Coast’s membership in a multinational monetary union has helped the country to weather such fluctuations without the need for drastic and disruptive short-term stabilization measures. Ivory Coast’s growth has also depended heavily on external factors, both labor and capital. Foreign labor has made its contribution at both ends of the employment scale. Substantial numbers of unskilled migrants are employed, particularly in agriculture, as well as highly skilled expatriate managers and technicians. This dependency on external factors has given rise to a rapid growth in external debt, in debt servicing, and in workers’ remittances abroad. The rapid growth in debt servicing has led to pressure on the level of domestic savings available for investment, while high factor-income payments abroad have aggravated balance of payments pressures due to fluctuations in income and the terms of trade.

To alleviate these growing problems, the Ivorian Government introduced some important measures, a number of which were reflected in the objectives of the 1976–80 Development Plan. While development had previously been concentrated in import-substitution industry, emphasis was now placed on developing processing and manufacturing industries geared for export. The objective was to reduce the country’s dependence on primary product exports and hence on volatile primary product prices. In order to diversify further the agricultural sector, investment was stepped up in the cotton, cereals, and livestock sectors.

To reduce the dependence of the economy on external factors, steps were taken to accelerate the assumption of managerial responsibility and ownership by nationals in the private sector, and to increase the mobilization of domestic savings. At the same time Ivory Coast’s traditional liberal attitude to foreign private investment was maintained.

A major reform of the monetary system in 1975 provided the authorities with the means to increase the mobilization of domestic savings while providing the central bank with more effective instruments of monetary policy to deal with growing inflationary pressures in the economy.

The Monetary and Financial System

Ivory Coast is a member of the West African Monetary Union (Union Monétaire Ouest Africaine), together with five other countries: Benin, Niger, Senegal, Togo, and Upper Volta. Originally established in 1962, the Monetary Union was substantially reorganized and reformed in a new treaty signed on November 14, 1973, which entered into effect, after ratification by members, in 1975. The Monetary Union provides for centralized foreign currency reserves, a single currency issued by a common central bank, the Central Bank of West African States (Banque Centrale des Etats de l’Afrique de 1’Ouest—bceao), a common interest rate structure, free transfer of funds within the Union, and common banking legislation.

Under the current treaty, a Conference of Heads of State of member countries has become the supreme decision-making body of the Monetary Union. The Conference meets at least once a year to decide on matters related to membership in the Monetary Union and on all unresolved matters from the next level of authority below the Conference, the Council of Ministers. The Council of Ministers, which, prior to the reform was the highest level of authority, is composed of two ministers from each member country, one of whom is the minister of finance. Both the Conference and Council require a unanimous vote to reach a decision. The Council of Ministers is responsible for the formulation of monetary policy for the Monetary Union as a whole, for supervising its implementation by the bceao, and for overseeing the coordination of banking legislation among member countries. Within the guidelines set for the Monetary Union as a whole, a National Credit Committee in each member country, chaired by the minister of finance, is responsible for applying monetary and credit policy within the country and for supervising its implementation by the national branch of the bceao.

The statutes regulating the operations of the Monetary Union’s joint central bank, the bceao, were revised simultaneously with the new Monetary Union Treaty. The bceao, with headquarters now located in Dakar, Senegal, is managed by a Governor and a board of directors. The Governor, who is also chairman of the board, is appointed for a six-year term by the Council of Ministers. The board is composed of 14 members, with 2 representatives appointed by each member country and 2 by France. Each country, including France, has an equal vote and board decisions are taken on the basis of a simple majority for most central banking operations, including changes in interest rates and the establishment of credit ceilings. The power to change money market interest rates can be, and has been, delegated to the Governor of the bceao. More important decisions require a two-thirds majority, while amendments to the statutes require unanimity. Prior to the reform, most decisions required a two-thirds majority and French representation on the board amounted to one third. The bceao has a national branch in each member country headed by a national director; there are also a number of subbranches in secondary centers.

The bceao issues the Monetary Union’s common currency, the CFA (Communauté Financière Africaine) franc. Notes and coins issued by the bceao are legal tender in all member countries and circulate freely within the Monetary Union. CFA notes are marked by a code letter following the serial number to enable the bceao to keep separate accounts for each country of both currency in circulation and its corresponding share in the pool of external reserves. The identification of notes has revealed that the movement of currency between Ivory Coast and Upper Volta and Niger is fairly large, reflecting traditional trading patterns as well as movements of migrants. Coins are not identified by country.

Although not a member of the Monetary Union, France was active in its establishment and development. Under a cooperation agreement, also revised in 1973, France has agreed to furnish such assistance as the Monetary Union may require to assure the free convertibility of the CFA franc, in particular by providing overdraft facilities through the Union’s Operations Account with the French Treasury. In return, the Monetary Union has agreed to maintain at least 65 per cent of its foreign currency reserves in the Operations Account. Previously, the Monetary Union had to maintain with the French Treasury all its foreign currency reserves apart from working balances, each country’s reserve tranche with the International Monetary Fund, holdings of SDRs, and, since 1967, small holdings of World Bank bonds. The present exchange rate of the CFA franc with respect to the French franc, CFAF 50 = F 1, has been unchanged since the post-World War II realignment of the metropolitan franc with respect to the franc circulating in French overseas dependencies. However, the parity can be changed by the Monetary Union in consultation with France. All the members of the Monetary Union are also members of the French franc area and align their exchange control policies with those of the area. Transfers within the French franc zone are subject to only minimal statistical controls.

Ivory Coast has a highly developed and rapidly growing banking sector. Besides the bceao, there were 20 deposit money banks operating in Ivory Coast at the end of September 1981. There were also 7 representative offices of foreign banks and 12 nonbank financial institutions. Of the 20 banks, 5 were branches of foreign banks, while 15 had their head office in Ivory Coast. The principal banks operated more than 276 counters in the country at the end of September 1981, compared with 35 in 1964 and 95 in 1974.

Of the 20 banks, 5 can be characterized as specialized credit institutions and are mainly publicly owned. Formerly, these banks were classified as development banks by the bceao, and the others as commercial banks. However, the bceao no longer draws this distinction and now treats all banks as deposit money banks. General provisions concerning banks and financial institutions are set out in Law No. 75-549 of August 1975. All banking rules and regulations are uniformly applied, although the bceao does take account of specialization in the application of sectoral credit priorities.

One important specialized institution is the Banking Department of the Autonomous Amortization Fund (Caisse Autonome d’Amortissement), established in 1959. This Fund acts as banker to the public sector and, through a separate department, also manages Ivory Coast’s public debt. Most public agencies and institutions are required to deposit their surplus funds with the Fund’s Banking Department. Depositors include the Agricultural Price Stabilization Fund and the Autonomous Amortization Fund’s own public debt department. The Fund is not authorized to make direct loans to the Treasury, but it can rediscount customs duty bills held by the Treasury.

Two institutions provide medium- and long-term credit for industry: the Ivorian Industrial Development Bank (Banque Ivorienne de Développement Industriel—bidi), established in 1965, which concentrates mainly on larger industrial loans; and the Credit Bank of Ivory Coast (Crédit de la Côte d’Ivoire—cci), established in 1955, which extends loans to small industrial and handicraft ventures, as well as for automobiles, housing, and construction.

The functions of the National Fund for Agricultural Credit (Caisse Nationale de Crédit Agricole), formed in 1959 with 100 per cent government equity, were taken over by the National Agricultural Development Bank (Banque Nationale de Développement Agricole—bnda) in January 1968. In addition to making medium-term loans to farmers, the bnda extends loans for agricultural projects mainly through the official agencies responsible for the different sectors of agricultural production.

Financing for the housing sector is provided by the National Bank for Savings and Credit (Banque Nationale pour l’Epargne et le Crédit—bnec), established in 1975. The bnec accepts savings deposits and makes loans to real estate companies and to finance low-cost housing.

In 1978 the existing Postal Checking System and the National Savings Bank were amalgamated into the Ivorian Bank for Savings and Development of Post and Telecommunications (Banque Ivoirienne d’Epargne et de Développement des Postes et Télécommunications—bipt). The bipt collected savings, placed Post Office funds with the Treasury, the Autonomous Amortization Fund, and the banks, and participated in the financing of the Post Office’s investment program. In 1981 the bipt was dissolved and the Postal Checking System and the National Savings Bank were re-established as autonomous entities.

Besides the deposit money banks, Ivory Coast has a diversified and rapidly growing system of nonbank financial institutions. These include companies that finance the purchase of vehicles and other equipment, those that finance building construction, leasing companies, and mutual credit associations. Three publicly owned institutions have played an important role in promoting savings and investment.

The National Investment Fund (Fonds National d’Investissements) was created in 1962 to stimulate private investment activities. Its resources are derived mainly from a 10 per cent surcharge on the profits tax, with a basic exemption of CFAF 80,000 to exclude small taxpayers who would find it difficult to meet the conditions for reimbursement. Taxpayers receive noninterest-bearing certificates with no specific maturity. If a certain multiple of these certificates is invested, the Investment Fund reimburses a proportion that varies according to the priority attached to the investment. If no investment is undertaken, the certificates may be converted into bonds of the National Finance Company, provided that the holder invests an equal amount of cash in such bonds. If not used for these two purposes, the certificates can be converted into 40-year, 2.5 per cent government bonds issued by the Autonomous Amortization Fund.

The National Finance Company (Société Nationale de Financement—Sonafi) was created in November 1963 with the primary objective of mobilizing voluntary domestic savings through long-term bond sales to private individuals and enterprises. It issued bonds maturing in 20 years with 7 per cent interest, tax free. Although in principle the resources of the company may be used for a wide range of investments, in practice they have been utilized mainly for government capital participation in enterprises. The dissolution of Sonafi was announced in 1980.

In 1968 the Ivorian Government established the Fund to Guarantee Credits to Ivorian Enterprises (Fonds de Garantie des Crédits aux Entreprises Ivoiriennes) to provide guarantees for commercial bank credit to small and medium-sized indigenous enterprises, in particular for those that would have difficulties obtaining bank credit without such a guarantee. Short-, medium-, and long-term credits, up to a maximum of CFAF 25 million for each enterprise, may be guaranteed by this fund. The guarantees may cover up to 80 per cent of the amount of credit, while the local entrepreneur must provide equity of at least 10 per cent of the cost of the program for which the credit has been requested.

A substantial number of insurance companies operate in Ivory Coast. As the bulk of their business is non-life, they are not a major generator of savings although legal reserve requirements provide some funds for local placement.

To help in diversifying further the range of financial instruments available to local savers, a stock exchange began operations in Abidjan in 1976. Besides bonds issued by the public sector, the shares of 23 enterprises, with a market capitalization of over CFAF 60 billion, were traded on the stock exchange at the end of October 1981, with a monthly volume of approximately CFAF 50 million. The principal banks act as brokers and jobbers in the market.

Mention should also be made of the African Development Bank, which has its headquarters in Abidjan. This institution, which began operations in 1966, now has 50 member countries.

Monetary and Financial Policies

The year 1975 was a watershed in the development of Ivory Coast’s monetary system. Prior to the reform, monetary policy in the Monetary Union was essentially passive, reacting to events rather than positively shaping them. The main impetus for reform came from a desire to see monetary policy and the banking and financial system play a more dynamic role in development. Up to 1975 the implementation of monetary policy in Ivory Coast depended on two principal instruments, rediscount ceilings and a liquidity ratio. The bceao also had authority to establish reserve ratios for the banks but this authority was never used. Rediscount limits were established for each individual borrower by the bceao. Those for short-term credit were based mainly on considerations of creditworthiness rather than on the priority of the investment for economic development. Rediscountable medium-term credit, on the other hand, was only granted for projects included in the national plan and approved by the planning authorities. Borrowers could, however, borrow over the limits at higher interest rates, but this nonrediscountable credit could not be refinanced by the banks at the bceao. Furthermore, as the banks’ rediscounted and rediscountable credit were both included in the numerator of the liquidity ratio, banks were encouraged to extend rediscountable credit. Nevertheless, to the extent that the banks could obtain resources of more than six months’ term (which were excluded from the denominator of the liquidity ratio), they could expand credit and, in particular, nonrediscountable credit without any constraint from the monetary authorities. Levels of rediscountable credit on the other hand were subject to control by the ceilings on rediscounts set by the bceao for the country as a whole and for each individual bank. However, the seasonal credit needs of each country, to finance the harvest, were always accorded the highest priority and granted virtually without limit while the ceilings on nonseasonal credit were set mainly in relation to the projected needs of the real economy. Furthermore, as most projects of high priority were accorded access to rediscountable credit, any excessive restriction of rediscount ceilings would slow, or increase the cost of, priority projects. In spite of these weaknesses in the instruments and application of credit policy, other aspects of the Monetary Union system made important contributions to Ivory Coast’s development. The convertibility arrangements for the CFA franc were and continue to be an essential confidence-building component in Ivory Coast’s liberal approach to foreign investment, while the corollary of such arrangements, the absence of exchange controls, has prevented the appearance of distortions in the growing economy that are invariably associated with such controls.

While, under the original provisions of the Monetary Union, it proved difficult to fine tune credit to the private sector, in contrast a firm and very restrictive limit on credit to the Government was maintained. Credit to the Government by the bceao, including discounted treasury bills and ways and means advances, and by banks using the bceao’s rediscount facilities, to the extent of such use, was limited to 10 per cent (increased to 15 per cent in 1968) of the Government’s fiscal receipts in the previous year. The term of such credit was originally limited to 240 days in each year but this limit could be and was relaxed by the bceao in the light of the Monetary Union’s overall reserve position. The limit was an effective bar to excessive deficit financing of government budgets. Such discipline was not only necessary to prevent monetary depreciation and hence a devaluation of the exchange rate, or an unlimited overdraft on the Operations Account with the French Treasury, but also to assure among members equitable treatment in access to the resources of the Monetary Union.

The aims of the monetary reform can be summarized under three main headings. The first objective, as already mentioned, was to increase the role of the monetary system in promoting the economic development of members of the Monetary Union, by increasing and optimizing the use of financial savings and by retaining these savings within the Union. Second, measures were taken to increase the flexibility of monetary policy so as to enable it to be adapted more closely to the particular circumstances of individual members. In other words, the aim was to increase the degree of national control of monetary policy while at the same time preserving the advantages in terms of mutual support furnished by a multinational Monetary Union. Third, the reform accelerated the process of staffing the bceao with nationals of members of the Monetary Union, while a complementary decision was taken to relocate the head office of the bceao from Paris to Dakar (implemented in June 1978). Measures were also taken to increase credit to small and medium-sized enterprises owned by nationals of member countries in order to promote local entrepreneurship and hence develop and strengthen local participation in the national economies of member states.

One of the most important measures taken to implement these objectives was a major upward revision of interest rates. In 1973 the discount rate, which had been unchanged since the creation of the bceao, was increased from 3.5 per cent to 5.5 per cent. In comparison, however, interest rates in France soared to a record 13 per cent in 1974. This differential in interest rates continued to pull funds out of the Monetary Union. In July 1975 the basic discount rate of the bceao was increased to 8 per cent. At the same time, to ease the economic impact of such a sharp rise in interest rates, particularly on the economically weaker members of the Monetary Union, a new preferential discount rate of 5.5 per cent was introduced for crop financing, credit to governments, certain housing loans, and credit to small and medium-sized national entrepreneurs. The whole structure of interest rates in the Monetary Union was revised to take account of these new basic rates. In April 1980 both these discount rates were raised by 2.5 percentage points and again in April 1982 by an additional 2 percentage points. The banks’ lending and borrowing rates were adjusted accordingly.

A money market was established for interbank funds within each member country and within the Monetary Union as a whole. The objective was to provide the bceao with another instrument to influence the cost of funds to banks. Rates in the market, which can be changed by decision of the Governor of the bceao, have been set to reflect interest rates abroad, particularly in France. The money market thus enables banks to employ excess funds gainfully within the Monetary Union instead of being obliged to place them abroad. By providing funds either through the money market, or by discounting at the basic discount rate, or at the preferential rate, the bceao can increase or reduce the cost of the banks’ resources.

Besides establishing a preferential discount rate on bank lending to the Government, the revised statutes of the bceao increased the limit on such lending to 20 per cent of the previous year’s fiscal revenue. Furthermore, the bceao was empowered to discount within this overall ceiling medium-term government paper (up to ten years) in order to provide finance for development projects. To increase further the flow of resources into the development effort in the Monetary Union, a joint development bank, the West African Development Bank (Banque Ouest-Africaine de Développement) was established. Half of this bank’s initial capital of CFAF 2.4 billion was provided by the bceao, the remainder by the member states of the Monetary Union.

In addition to the incentive provided by the preferential discount rate for increasing credit to certain priority sectors, the new system has provided another tool for influencing the sectoral distribution of credit. Credits extended by banks to customers with more than CFAF 30 million in credit outstanding (CFAF 100 million in Ivory Coast and CFAF 70 million in Senegal) are now subject to prior approval by the National Credit Committee. For loans of under CFAF 500 million this power has been delegated to the respective National Director of the bceao. The granting of prior authorization is governed by guidelines established on the basis of national development objectives.

A further element of the reform was a substantial elaboration of the methodology for establishing monetary targets. Before the beginning of each year detailed forecasts are prepared of the main economic aggregates for each member of the Monetary Union. Targets are established for changes in the gross foreign assets of the bceao for the Monetary Union as a whole and for each member. In light of these targets and the expected developments in the real economy, appropriate levels of central bank credit to governments and to banks are established. These targets, after approval by the Council of Ministers, guide the intervention of the central bank in each member’s economy.

Conclusion

The rapid growth and increasing complexity of the Ivorian economy have sharply increased demands on the banking and financial system, whose role in the mobilization and efficient allocation of financial resources is becoming increasingly important for the future development of the economy. The growing number of specialized financial institutions reflects the response of the financial sector to the increasingly sophisticated requirements of borrowers, while the increase in the number of commercial banks reflects both the expanding needs of borrowers and the growing opportunities for lenders. Overall growth of the financial sector has increased competition and hence promoted efficiency, while the expansion of branch networks by the principal banks throughout the country has played an important role in the monetization of the economy and the promotion of personal savings. The 1975 monetary reform provided the authorities with more effective tools to guide the development of the monetary system in the medium term and to improve the formulation, execution, and effectiveness of monetary policy in the short term.

Treaty Establishing the West African Monetary Union 1

The Government of the Republic of Ivory Coast,

The Government of the Republic of Dahomey,

The Government of the Republic of Upper Volta,

The Government of the Republic of Niger,

The Government of the Republic of Senegal,

The Government of the Togolese Republic,

Conscious of the profound solidarity of their States;

Convinced that it constitutes one of the essential means for a rapid and, at the same time, coordinated development of their national economies;

Believing that it is in their individual countries’ and their common interests to continue as a monetary union and, in order to ensure the operation of that union, to maintain a common central bank;

Anxious, nevertheless, that each should, as far as it is concerned, watch over the proper allocation of national monetary resources for the development of their economies:

Convinced that a definition and strict observance of the rights and obligations of the members of such a monetary union are essential in order to ensure its functioning in the common interests and in the interests of each of its members,

have agreed on the following provisions:

Title I. General Provisions

Art. 1. The West African Monetary Union, established among the States that are signatories to this Treaty, is characterized by the recognition of one and the same monetary unit, the issuance of which is entrusted to a common bank of issue lending its cooperation to the national economies, under the control of the Governments pursuant to the terms set forth hereinafter.

Art. 2. Any West African State may, upon applying to the Conference of Heads of State of the Union, be admitted to the West African Monetary Union.

The terms of its membership shall be determined by agreement between its Government and the Governments of the Member States of the Union pursuant to a proposal by the Council of Ministers of the Union established under Title III hereinafter.

Art. 3. Any Member State may withdraw from the Union. The Conference of Heads of State of the Union must be notified of the Member State’s decision. Such decision shall, de jure, take effect 180 days after notification thereof. This period may, however, be shortened by agreement of the parties.

The terms relating to the transfer of the issue service shall be fixed by agreement between the Government of the withdrawing State and the bank of issue of the Union acting on account of and pursuant to the terms laid down by the Council of Ministers of the Union.

That agreement shall likewise specify such portion of the negative positions that may appear in the item “external liquid assets” of the statement of certain other States of the Union as must be taken over by the withdrawing State owing to its joint and several participation in the previous management of the common currency.

Art. 4. The signatory States undertake, under penalty of automatic exclusion from the Union, to respect the provisions of this Treaty and of the implementing provisions thereunder, especially as regards:

  • (1) the rules underlying currency issue,
  • (2) centralization of monetary reserves,
  • (3) free circulation of currency and freedom of transfers between States of the Union,
  • (4) the provisions of the articles hereinafter.

The Conference of Heads of State of the Union shall, subject to the unanimous vote of the Heads of State of the other Members of the Union, note the withdrawal from the Union of any State that has failed to respect the above-mentioned undertakings. The Council of Ministers shall draw such conclusions as might be necessary to safeguard the interests of the Union.

Title II. Conference of the Heads of State

Art. 5. The Heads of the Member States of the Union meeting as a Conference shall constitute the supreme authority of the Union.

The Conference of Heads of State shall rule on the admission of new members, note the withdrawal and the exclusion of members from the Union, and determine the location of its bank of issue.

The Conference of Heads of State shall decide any question that could not be solved unanimously by the Council of Ministers of the Union and which is submitted by the latter for its decision.

Conference decisions, called “Conference Acts,” shall be adopted by unanimous vote.

The Conference shall be in session for one calendar year in each of the States of the Union, rotating in the alphabetical order of their names.

It shall meet at least once a year and as often as may be necessary, on the initiative of the incumbent Chairman or at the request of one or more Heads of Member States of the Union.

The chairmanship of the Conference shall be held by the Head of the Member State in which the Conference is in session.

The incumbent Chairman shall determine the dates and places of the meetings and shall draw up their agendas.

In case of emergency, the incumbent Chairman may consult the other Heads of State of the Union at their domiciles by a written procedure.

Title III. Council of Ministers of the Union

Art. 6. The Monetary Union shall be managed by the Council of Ministers of the Monetary Union.

Each of the States shall be represented at the Council by two Ministers and shall have only one vote, cast by its Minister of Finance.

Each of the Ministers who are members of the Council shall designate an alternate who shall assist him at meetings of the Council and shall replace him in case of absence.

Art. 7. The Council shall choose one of the Ministers of Finance of the Union to preside over its work.

This election made ex officio shall call on the Ministers of Finance of the Union to serve as chairmen of the Council on a rotating basis.

The term of office of the Chairman shall be two years.

The Chairman of the Council of Ministers shall call and preside over the meetings of the Council. He shall see both to the preparation of reports and proposals for decisions that are submitted to him and to the action taken on them.

For purposes of discharging his office, the Chairman of the Council of Ministers may call for information and assistance from the bank of issue of the Union. The bank of issue shall provide for the organization of the meetings of the Council of Ministers and shall furnish its secretariat.

Art. 8. The Governor of the bank of issue of the Union shall attend the meetings of the Council of Ministers. He may request to be heard by the latter. He may arrange to be assisted by those of his associates whose cooperation he deems necessary.

Art. 9. The Council of Ministers of the Union may invite duly accredited representatives of international institutions or of States with which a cooperation agreement may have been concluded by the Governments of the States of the Union to participate in work or deliberations, with the right to speak in an advisory capacity, pursuant to the terms laid down in such agreement.

Art. 10. The Council of Ministers shall meet at least twice a year upon being called by its Chairman, either on the latter’s initiative or at the request of the Ministers representing a Member State or on request by the Governor of the Union’s bank of issue.

Art. 11. The Council of Ministers shall by unanimous vote adopt decisions on matters referred to its jurisdiction by the provisions of this Treaty and the Charter of the joint bank of issue that is attached thereto, as well as on all those which the Governments of the Member States of the Union may agree to submit to it for examination or to refer to it for decision. Such decisions must respect the international commitments contracted by the Member States of the Union.

Art. 12. The Council of Ministers of the Union shall determine the monetary and credit policy of the Union in order to ensure that the common currency will be safeguarded and to provide for the financing of the economic development and activity of the States of the Union.

In order to enable the Council of Ministers to carry out its duties, the Governments of the Member States of the Union shall keep it informed of the economic and financial situation, the prospects for development of that situation, and their decisions and plans, knowledge of which would seem necessary to the Council.

Art. 13. The Council of Ministers shall approve any agreement or convention, involving an obligation or undertaking of the joint bank of issue, that is to be concluded with foreign governments and banks of issue or international institutions.

It shall approve in particular clearing and payments agreements between the joint bank of issue and foreign banks of issue, designed to facilitate external settlements of the States of the Monetary Union.

It may empower its Chairman or the governor of the bank of issue to sign agreements and conventions in its name.

Title IV. Common Currency Unit

Art. 14. The legal currency unit of the Member States of the Union shall be the franc of the African Financial Community (CFAF).

The definition of the franc of the African Financial Community shall be the one in force at the time this Treaty is signed.

The name and the definition of the currency unit of the Union may be modified by a decision of the Council of Ministers, provided the international commitments contracted by the Member States of the Union are respected.

Title V. Common Bank of Issue

Art. 15. In the territory of the signatory States, the exclusive power of currency issue shall be entrusted to a common bank of issue, the Central Bank of the West African States, hereinafter called the “Central Bank.”

Art. 16. The Central Bank shall be governed by the Charter attached to this Treaty. The provisions of the Charter may be amended by the Council of Ministers of the Union pursuant to an opinion unanimously expressed by the Board of Directors of the Central Bank.

Art. 17. With a view to allowing the Central Bank to carry out the duties entrusted to it, the immunities and privileges usually recognized for international financial institutions shall be granted to it in the territory of each of the Member States of the Union pursuant to the terms laid down in its Charter.

The Central Bank shall not be subject to any obligations or controls other than those specified by this Treaty or by its Charter.

Art. 18. Currency issued in each of the States of the Union by the Central Bank shall be legal tender throughout the territory of the States of the Union.

The banknotes issued by the Central Bank shall be identified by a special letter for each State, which shall be included in their serial number.

In each State, the cash offices of the Central Bank, public cash offices, and banks domiciled at the location of an agency or a subagency of the Central Bank may place in circulation only banknotes bearing the identification mark of the State.

Art. 19. The Central Bank shall draw up for each State of the Union a separate statement of currency issued and of its counterparts.

Art. 20. The Central Bank shall keep a statement: of the external liquid assets of the Treasuries, public establishments and enterprises, and local governments of the States of the Union,

of that portion of the external liquid assets, corresponding to their business in the Union, of the banks and credit establishments that are established there.

Should its external liquid assets be exhausted, the Central Bank shall require that external liquid assets in French francs or other foreign currencies held by any public or private agencies amenable to the jurisdiction of the States of the Union be surrendered for the benefit of the Central Bank in return for currency issued by it.

In proportion to the foreseeable requirements, it may limit such call to public agencies and to banks and may do so with priority in the States whose statement of currency issue, drawn up in pursuance of Article 19 hereinabove, shows a negative position of the item “external liquid assets.”

Art. 21. The Central Bank shall keep the Council of Ministers and the Ministers of Finance of the Member States informed of the flow of financial movements and of the development of claims and debts between these States and the outside world.

To this end, it may requisition, either directly or through banks, financial establishments, the Postal Administration, and notaries, any information on the external transactions of public administrative agencies, natural or juridical persons, public or private, having their residence or their registered office in the Union, and persons having their residence or their registered office abroad for their transactions relating to their stay or activity in the Union.

Title VI. Harmonization of Monetary and Banking Laws

Art. 22. To allow the full application of the principles of monetary union defined above, the Governments of the Member States agree to adopt uniform rules, the provisions of which shall be laid down by the Council of Ministers of the Union, concerning in particular:

implementation of and control over their financial relations with countries that do not belong to the Union;

general organization of credit distribution and control;

general rules governing the exercise of the banking profession and related activities;

negotiable instruments;

curbing the counterfeiting of currency and the use of counterfeit currency.

The Council of Ministers of the Union may, without impairing the underlying principles, authorize such waivers in respect of the provisions agreed to as may seem justified to it by the particular conditions and needs of a Member State of the Union.

Title VII. Joint Financing and Development Institutions

Art. 23. The Council of Ministers of the Union may decide to have the Central Bank create or participate in the setting up of any special fund, organization, or institution designed, in the interest of the coordinated development and integration of the Member States of the Union, in particular:

  • (a) to assist the Member States in the coordination of their development plans with a view to making better use of their resources, achieving greater complementarity of their production, and developing their external trade, especially trade among themselves;
  • (b) to gather available internal funds;
  • (c) to look for external capital;
  • (d) to organize a money market and a financial market;
  • (e) through participation, loans, endorsement guarantees or payment of interest, to grant direct financial cooperation for investments or activities of common interest;
  • (f) to grant complementary financial cooperation through participation, loans, endorsement guarantees, or interest subsidies to the States of the Union or to national development agencies;
  • (g) to teach banking techniques and to train the staff of banks and banking establishments.

The Council of Ministers shall determine the charters and the terms of setting up the capital or appropriation for such joint institutions of the Union as it may decide to create.

Title VIII. Miscellaneous Provisions

Art. 24. The provisions of the Treaty shall, de jure, supersede those of the Treaty Establishing the West African Monetary Union, concluded May 12, 1962.

The rights and obligations of the Central Bank of West African States in respect of third parties shall not be affected by this supersession.

Art. 25. This Treaty shall become applicable after notification of its ratification by the Signatory States has been conveyed to the Republic of the State in which the headquarters of the Central Bank of West African States will be established, on a date which shall be fixed by joint agreement among the parties by the Signatory Governments.

{The signatory clause is omitted.}

Charter of the Central Bank of West African States 1

Title I. Formation—Capital—Legal Status

Art. 1. The Central Bank of West African States, hereinafter called “The Central Bank,” is an international public institution, formed by the Member States of the West African Monetary Union.

Art. 2. The headquarters of the Central Bank shall be established in one of the Member States of the West African Monetary Union, chosen by the Heads of these States.

The Central Bank shall have an agency in each of the Member States of the West African Monetary Union.

In agreement with the Government concerned, the Board of Directors may decide to open subagencies, banknote depositories, and offices.

It may likewise decide to open offices outside the Union in order to meet the operating requirements of the Central Bank.

Art. 3. The capital of the Central Bank shall be fully subscribed by the Member States of the Union and divided among them in equal shares.

It may be increased either by contribution in cash or by incorporation of reserves. It shall also be increased on the accession of new members to the West African Monetary Union.

It may be reduced when one of the participating States withdraws from membership or in order to meet losses.

Art. 4. In order for the Central Bank to carry out its functions, it shall enjoy in the territory of the States of the Union the status, immunities, and privileges of international financial institutions.

Among other things, the Central Bank shall have full juridical personality and, in particular, the capacity to conclude contracts, to acquire and dispose of property and real estate, and to institute legal proceedings.

For this purpose, it shall, in each of the States of the Union, enjoy the fullest legal capacity accorded juridical persons by the national laws.

In the course of any legal proceedings, the Central Bank shall be exempt from the requirement of furnishing security and an advance in all cases in which the laws of the States provide that this obligation is incumbent upon the parties.

The property and assets of the Central Bank, wherever located and by whomsoever held, shall be immune from all forms of seizure, attachment, or execution until such time as a final judgment is rendered against it.

The property and assets of the Central Bank thus defined shall be immune from search, requisition, confiscation, expropriation, or any other form of seizure ordered by the executive or legislative branches of the Member States.

The records of the Central Bank shall be inviolable.

Its assets shall be immune from any restrictive measures.

Official communications of the Central Bank shall be accorded by each Member State of the Union the same treatment as official communications of the other Member States.

However, when the Central Bank is entrusted by a State with special tasks, these exemptions shall not be applicable to such tasks.

Title II. Operations of the Central Bank

section 1. general provisions

Art. 5. Operations of the Central Bank must relate to the organization and management of the monetary, banking, and financial systems of the West African Monetary Union and of its Member States and be carried out pursuant to this Charter.

section 2. issue of currency

Art. 6. The Central Bank shall have the exclusive privilege of issuing the currency units, banknotes, and coins that shall constitute lawful currency and legal tender in the Member States of the West African Monetary Union.

Art. 7. Pursuant to a proposal by the Board of Directors of the Central Bank, the Council of Ministers of the Union shall decide on the creation and issuance of banknotes and coins, their withdrawal, and their cancellation.

The Board shall fix their face value. It shall determine the form of their denominations and the signatures they must bear.

It shall decree the features identifying them by State or issuing agency.

Art. 8. In the event of withdrawal from circulation of one or more categories of banknotes or coins, such banknotes or coins as have not been presented to the Central Bank within the prescribed time limits shall cease to be legal tender.

The equivalent of the currency units identified by State or issuing agency shall be paid to the State in which they were issued, and that of unidentified currency units shall be earmarked by a decision of the Council of Ministers of the Union.

section 3. operations engendering currency issue

Art. 9. The Central Bank may for its own account or for account of third parties carry out any operations involving gold, means of payment, and securities denominated in foreign currencies or defined by weight of gold.

It may lend or borrow amounts of currency issued by its vis-à-vis foreign banks and foreign or international monetary institutions or agencies.

In connection with these operations, the Central Bank shall require or grant such guarantees as seem appropriate to it.

Art. 10. The Central Bank may discount, acquire, sell, and take as collateral or as security, claims on the States of the Union and on enterprises or individuals in circumstances defined by the Board of Directors.

The Central Bank may buy, sell, or take as collateral, bills or securities listed by the Board of Directors.

Art. 11. Under the provisions of Article 10 hereinabove, the Board of Directors shall decide, in particular, the terms and the amount of medium-term central bank assistance that may be granted by the National Credit Committees for the establishment and promotion of national enterprises.

Art. 12. The Central Bank may discount, or accept as collateral or as security, customs duty bills and tax bills drawn to the order of the Treasuries of the States of the Union, with not more than four months to maturity, subject to solvency of the drawer and to a bank guarantee.

Art. 13. The Central Bank may grant banks advances on government securities created or guaranteed by Member States of the Union to the extent of the amounts fixed by the Board of Directors.

Moreover, the Central Bank may purchase from banks, and resell to them without endorsement, these same securities provided that they have not more than one year to run and that they are not negotiated for the benefit of public Treasuries.

Art. 14. The Central Bank may grant to the public Treasuries of the States of the Union, at its discount rate, overdrafts on current account.

The unsettled balance of the Central Bank’s postal current account shall be treated, for the purposes of this article and of Article 16 hereinafter, as an overdraft granted to the public Treasury.

Art. 15. The Central Bank may discount or rediscount public securities maturing within not more than ten years and created by the States and local governments of the Union, which may be presented to it by the States and local governments, the West African Development Bank, and banks or financial establishments of the Union, to finance the creation or improvement of public facilities, infrastructure, or action designed to improve production conditions, or to subscribe to the capital of enterprises contributing to development.

The appropriations required to service the interest on and repayment of the securities issued must be entered in the budget of the State or of the issuing local government, and operations so financed must have been approved by the Board of Directors of the Central Bank.

Art. 16. The total amount of assistance granted by the Central Bank to a State of the Union, pursuant to the provisions of Articles 13, 14, and 15, hereinabove, may not exceed the equivalent of 20 per cent of the national tax revenue recorded in the course of the past fiscal year.

Within this limit, the National Credit Committees of all the States of the Union, in cooperation with the Board of Directors, shall determine a ceiling for each of the operations that may be effected according to the provisions of Articles 13, 14, and 15, hereinabove.

Total assistance actually being used at any time must not exceed the limit fixed in the first paragraph of this article,

minus:

the amount of the balance of the Central Bank’s postal current account opened with the Postal Administration of the State concerned;

the amount of public securities of the State concerned, discounted by the Central Bank, and also the amount of these securities accepted by it as collateral for advances for the benefit of banks of the Union having recourse to the Central Bank’s assistance;

the amount of loans, advances, and deposits at the public Treasury, in postal current accounts or with public credit or deposit establishments of the States of the Union, made by banks enjoying the Central Bank’s assistance, which deduction may be limited to the total amount of the latter assistance when this is less than the said loans, advances, or deposits;

and plus:

the amount of the credit balance of the accounts opened at the public Treasury of the State concerned in the accounting records of the Central Bank.

Art. 17. The Central Bank shall be authorized to take shares in the capital of the West African Development Bank and of the other joint financing establishments set up under Article 23 of the Treaty Establishing the West African Monetary Union. Such participation must be authorized by the Board of Directors pursuant to the procedures set forth in Article 51, second paragraph, hereinbelow.

Art. 18. The Central Bank may demand that external liquid assets in French francs or other currencies, held by any public or private agencies under the jurisdiction of the States of the Union, be surrendered for its benefit in exchange for currency issued by it.

Depending on the foreseeable requirements, it may restrict such calls to public agencies and banks and may assign priority in making such calls to States whose currency issue statements show a negative position in the item of external liquid assets.

section 4. other operations

Art. 19. The Central Bank may open on its books accounts for banks, financial establishments, public establishments, and local governments. Such accounts may not show a debit balance.

Art. 20. The Central Bank shall carry out, between its agencies’ main offices, such transfers as it may be requested to make by the public Treasuries, banks, and financial establishments, as well as by holders of accounts on its books.

Art. 21. The Central Bank may undertake the encashment and collection of securities that are turned over to it.

Art. 22. The Central Bank may take shares in the capital of establishments or agencies whose activity is of general interest to one or more States of the Union.

It may also purchase, sell, or exchange real property, and take or transfer shares in real estate companies to meet its operational requirements or to provide housing for its staff.

The purchases and participations authorized hereinabove must be paid for out of its own funds, capital, and reserves and must previously be authorized by its Board of Directors.

section 5. relations of central bank with banks and financial institutions of west african monetary union

Art. 23. The Central Bank may grant assistance only in favor of the West African Development Bank, the other joint financing institutions established under Article 23 of the Treaty establishing the West African Monetary Union, and banks and financial institutions authorized to operate in the States of the Union, under the conditions laid down in the banking legislation and credit regulations determined in accordance with Article 22 of the aforesaid Treaty.

Art. 24. The Central Bank shall be empowered to require banking and financial institutions to supply it with any papers and information it needs to fulfill its functions.

It may, moreover, contact enterprises and professional groups with a view to conducting investigations for its own information and that of the Council of Ministers and the States of the Union.

Art. 25. The Central Bank may require banks, financial institutions, and postal current account agencies to report payment difficulties.

Art. 26. The Central Bank shall organize and manage clearinghouses in localities where it considers this necessary.

Art. 27. The Central Bank shall ensure enforcement in each State of the legal and regulatory provisions adopted by the national authorities pursuant to Article 22 of the Treaty establishing the Monetary Union, relating to the exercise of the banking profession and the control of credit.

Applications for authorization to establish or open banking institutions or financial institutions shall be passed on by the Central Bank.

Art. 28. The Central Bank shall, insofar as needed, propose to the Council of Ministers of the Union any provisions making it compulsory for banks and financial institutions to set up obligatory reserves deposited with them, the observance of a ratio between the various items of their resources and uses, or the observance of a ceiling or a minimum for the amount of certain of their uses. It shall ensure implementation of the relevant decisions of the Council of Ministers of the Union.

section 6. assistance given by central bank to governments of west african monetary union

Art. 29. At the places where it is established the Central Bank shall maintain the accounts of the Treasuries of the States of the Union.

It shall, without charge:

encash amounts paid into these accounts;

collect local bills and checks drawn on or endorsed to the order of the Treasuries;

pay checks and transfers drawn by the Treasurers on the accounts of the Treasuries;

effect transfers between its offices, made by order of the Treasuries.

At the end of each period of ten days the Central Bank shall clear any balances on current accounts held by it with the postal agencies or offices by transferring them to the accounts of the Treasuries on its books.

The accounts opened for the Treasuries of the States of the Union may not show a debit balance beyond the overdraft granted in pursuance of the provisions of Article 16 hereinabove.

Art. 30. At the request of the Government of a State of the Union, the Central Bank shall, without charge:

administer the portfolio of bills made out to the order of public accountable officers by parties owing taxes, levies, and duties;

provide safe custody for the cash assets belonging to the Treasuries of the States of the Union;

issue or sell for account of the States of the Union short-term bills made out by holders of an account on the books of the Central Bank;

pay bearer coupons and redeem securities of the States of the Union that are presented at its counters by holders of an account on its books;

make any investment of funds requested by the Treasuries of the States of the Union.

Art. 31. The Central Bank shall lend assistance in connection with the execution of external financial operations of the Governments of the Union.

Art. 32. The Central Bank may, upon the request of any Government of the Union, administer its external and internal public debt.

It may also, upon request, assist any Government of the Union in negotiating its external borrowing and in studying the conditions for issue and redemption of its domestic loans.

Art. 33. The Central Bank shall, upon request by them, assist the Governments of the States of the Union in their relations with international financial and monetary institutions and in negotiations entered into by them with a view to concluding international financial arrangements.

It may be entrusted with the execution of these arrangements pursuant to terms laid down in agreements approved by the Board of Directors.

In any event, it shall be kept informed of arrangements entered into and of their execution.

Pursuant to conditions spelled out by the Council of Ministers, it shall pay their quotas in the International Monetary Fund, carry out their operations and transactions with the latter, and keep account of the special drawing rights allocated to them.

Art. 34. The Central Bank shall propose to the Governments any measure designed to ensure or maintain harmonization of the laws and regulations concerning the currency and operation of the West African Monetary Union, pursuant to the provisions of Article 22 of the Treaty Establishing the West African Monetary Union.

Art. 35. Upon request by the Governments of the States of the Union, the Central Bank may assist in implementing the regulations of their external financial relations and on foreign exchange, or certain provisions of those regulations.

Art. 36. The Central Bank shall be empowered to require the public Treasuries, postal administrations, and all public agencies to provide it with the information and data needed to carry out the provisions of this Charter and for it and the Council of Ministers of the Union to be informed about the overall monetary and financial position of the Union and its development prospects.

It shall ensure the gathering of information and data provided for in Article 21 of the Treaty Establishing the Monetary Union, by means and for purposes determined thereunder.

Title III. Administration of Central Bank

Art. 37. Under the ultimate direction and supervision of the Council of Ministers of the Union, the Central Bank shall be administered by:

a Governor;

a Board of Directors;

National Credit Committees, one in each of the States of the Union.

The Governor, the members of the Board of Directors and those of the National Credit Committees must, under their respective charters, be in possession of their civil and political rights and shall not have been convicted of any offense involving imprisonment or loss of civil rights.

The members of the Board of Directors and of the National Credit Committees may not be chosen from among the directors, managers, or representatives of banks, financial institutions, and private enterprises unless they assume those duties on behalf of the State.

section 1. council of ministers

Art. 38. The Council of Ministers instituted by and organized under the Treaty of November 14, 1973 Establishing the West African Monetary Union shall, pursuant to the conditions laid down by the Treaty, consider matters devolving upon its jurisdiction. It shall be incumbent upon the Council of Ministers in particular:

to decide any change in the denomination of the monetary unit of the Union and to fix that of its divisions;

to modify the definition of this currency unit, subject to observance of international commitments contracted by the Member States of the Union, and consequently to determine the declaration of parity of the currency of the Union that is to be made to the International Monetary Fund;

to approve any arrangement or agreement involving an obligation or commitment of the Central Bank that is to be concluded with foreign governments and banks of issue or international institutions, and in particular clearing or payment arrangements to be concluded with foreign banks of issue pursuant to the terms laid down in Article 13 of the Treaty;

to decide on the creation by the Central Bank or on the latter’s participation in the creation of any organizations or institutions aimed at the development of the States of the Union in the areas and for the purposes set forth in Article 23 of the Treaty;

to decree plans and regulations, prepared on its initiative or on that of the Central Bank, concerning the matters enumerated in Article 22 of the Treaty and to consent to waivers deemed necessary so as to adapt them to the specific conditions of the States of the Union;

to draw up draft agreements to be concluded with the Governments of the West African States that have applied for membership in the Monetary Union pursuant to the provisions of Article 2 of the Treaty;

to draw up draft agreements to be concluded with the Government of a Member State of the Union that has given notice of its decision to withdraw from the Union pursuant to the provisions of Article 3 of the Treaty;

to state for the record that a Member State having failed to meet its commitments set forth in Article 4 of the Treaty has left the Union and to draw pertinent inferences for the purpose of safeguarding the interests of the Union.

Art. 39. The Council of Ministers may amend the provisions of this Charter of the Central Bank pursuant to the terms set forth in Article 16 of the Treaty of November 14, 1973 Establishing the West African Monetary Union.

Art. 40. For the purpose of implementing this Charter, the Council of Ministers of the Union shall:

appoint the Governor and the Auditor-Examiner provided for in Article 64 of this Charter;

fix the expenses to be repaid and the attendance fees to be granted to the members of the Council of Ministers of the Union, of the Board of Directors, of the National Credit Committees, and also the fees of Auditor-Examiner and of the national Examiners;

fix the remuneration, the compensation, and the benefits in kind to be granted to the Governor of the Central Bank;

decree the characteristics of the banknotes and coins to be issued by the Central Bank, and the conditions for their being placed into circulation, withdrawn, and canceled;

decide the use, provided for by Article 67 of this Charter, of the statutory royalty and of the balance of profits after earmarking for reserves provided for by the same article.

section 2. governor and officials of central bank

Art. 41. The Governor of the Central Bank shall be appointed by the Council of Ministers for a nonrenewable term of six years.

He must be so chosen that a national of each of the Member States of the Union will be called upon in turn to discharge that office.

He shall swear before the Chairman of the Council of Ministers that he will duly and faithfully direct the Central Bank, in accordance with the terms of the Treaty establishing the Monetary Union, and with the international commitments contracted by it and wtih the Charter of the Central Bank.

Art. 42. The Governor shall be assisted in the discharge of his duties by a Deputy Governor appointed by the Board of Directors for a nonrenewable term of five years.

The Deputy Governor must be so chosen that a national of each of the Member States of the Union will be called upon in turn to discharge that office.

Art. 43. The duties of Governor and Deputy Governor shall preclude all assistance, whether or not against remuneration, in the activity of a private or public enterprise, except international governmental institutions, if any.

Art. 44. The Governor shall assure observance of the provisions of treaties, arrangements, international agreements, and this Charter, as well as of legislative and regulatory provisions relating to the Central Bank, and shall enforce the relevant provisions.

He shall call meetings of the Board of Directors, determine the agenda for its work, and conduct its deliberations.

He may request the Chairman of the Council of Ministers of the Union to call a meeting of the Council and may ask to be heard by the Council, whose meetings he shall attend with the right to speak in an advisory capacity.

He shall cause the decisions of the Council of Ministers and of the Board of Directors to be carried out.

He shall represent the Central Bank vis-à-vis third parties; he alone shall sign all arrangements and agreements by which the Central Bank is committed, except instruments in respect of which authority to sign has been delegated expressly to the Chairman of the Council of Ministers of the Union.

He shall manage the Central Bank’s external liquid assets.

He shall personally or by proxy represent the Central Bank at meetings of international institutions in which the Central Bank is invited to participate.

He shall present to the Board of Directors the accounts of the Central Bank and the Annual Report on its activities; he shall submit that Report to the Council of Ministers of the Union.

Art. 45. The Governor shall be responsible for the organization of the departments of the Central Bank and for their work.

He may delegate part of his powers to the Deputy Governor or to officials of the Central Bank.

Art. 46. The Governor:

shall hire and appoint the staff of the Central Bank, subject to receipt of approval, for the appointment of the director of an agency, from the Government of the State in which such agency has its head office;

shall assign all officials of the Central Bank to posts, cause their retirement rights to be respected, and discharge them;

shall fix their remunerations, retirement pensions, and benefits in kind that are granted to them.

Art. 47. The Governor, the Deputy Governor, and all the officials of the Central Bank shall be bound by professional secrecy, subject to the penalties provided for by penal legislation.

Art. 48. Officials of the Central Bank may not take or receive any share or any interest or remuneration whatever, through work or advice, in any industrial, commercial, or financial enterprise, public or private, except pursuant to waivers granted by the Governor.

The provisions of this article shall not be applicable to the production of scientific, literary, or artistic works.

section 3. board of directors

Art. 49. The Board of Directors shall be composed of Directors appointed by the Governments of the States participating in the management of the Bank, each of which shall designate two Directors.

In case he is unable to discharge his duties, any Director may commission, to represent him, either another Director or an alternate designated on a temporary basis by the Government he represents; the Governor of the Central Bank shall be notified of such commission and of the designation of alternates.

Directors may receive attendance fees, the amount of which shall be determined by the Council of Ministers of the Union.

Art. 50. The chairmanship of the Board of Directors shall be carried out by the Governor and, should he be prevented from discharging his duties, by the Deputy Governor.

The Board of Directors shall meet as often as necessary, but at least four times a year, upon being called by its Chairman either on its initiative or in pursuance of the provisions of Article 51, fourth paragraph, or upon request by one third of the Directors, or upon request by the Chairman of the Council of Ministers or by an Auditor.

Art. 51. For the deliberations of the Board of Directors to be valid, at least two thirds of its members shall be present or represented. The Governor, or his representative serving as chairman of the meeting, shall not take part in the voting.

Decisions shall be passed by a simple majority, except those adopted in pursuance of Article 52(1), (3), and (8) hereinafter, which require six sevenths of the votes, and those amending this Charter, which require a unanimous vote.

When the ratio of the average amount of external holdings of the Bank and the average amount of its sight liabilities in the course of three consecutive months has remained equal to or less than 20 per cent, the Governor, after having advised the Chairman of the Council of Ministers of the Union accordingly, shall immediately call a meeting of the Board of Directors in order to examine the situation and to take all appropriate measures, especially for the purpose of re-examining those of the decisions adopted previously that may have affected the monetary situation of the Union.

As long as the ratio specified hereinabove remains equal to or less than 20 per cent, supplementary decisions of the Board in matters referred to in Article 52(3) and (8) must be adopted by unanimous vote.

Art. 52. The Board of Directors shall, within the framework of the directives of the Council of Ministers of the Union:

(1) specify the general conditions pursuant to which the Central Bank shall carry out operations authorized by Articles 10 to 15 of this Charter;

(2) fix the amounts of advances which the Central Bank may grant to banks on public securities issued or guaranteed by the Member States of the Union;

(3) specify the operations of discounting or rediscounting public securities maturing within not more than ten years as provided for by Article 15 of this Charter;

(4) fix the discount rate and the rates and conditions for all operations handled by the Central Bank;

(5) issue the rules applicable to the National Credit Committees in the exercise of their powers;

(6) revise such decisions of the National Credit Committees as would be contrary to the provisions of this Charter and to the general rules relating to the exercise of their powers as determined by the Board of Directors;

(7) determine, according to a regular schedule fixed by it, the overall amount of assistance that was to be granted by the Central Bank for financing the economic activity and the development of each of the States of the Union;

(8) authorize the Central Bank to take shares in the capital of joint financial development institutions, within the scope of the provisions of Article 17 of this Charter;

(9) authorize the Central Bank to require that external liquid assets be surrendered for its benefit in exchange for currency issued by it, pursuant to the terms provided in Article 18 of this Charter;

(10) authorize acquisitions and transfers of title to real property and participations allowed by Article 22 of this Charter;

(11) close the annual accounts of the Central Bank pursuant to the terms laid down in Article 63 hereinbelow;

(12) determine the value at which claims held in suspense may remain included in the accounts on the assets side, and proceed with any write-off and the setting up of any reserves that may be deemed necessary;

(13) decide on the establishment, by the Central Bank, of subagencies, banknote depositories, and offices;

(14) draw up amendments to this Charter that must be submitted to the Council of Ministers of the Union for ratification.

section 4. national credit committees

Art. 53. A National Credit Committee shall have its headquarters at the Central Bank’s agency established in each of the States of the Union in pursuance of the second paragraph of Article 2 of this Charter.

That Committee shall be composed of the Minister of Finance, of two State representatives on the Board of Directors, and of four other members appointed by the Government of the State concerned from among the persons meeting the requirements laid down in Article 37 hereinabove.

Art. 54. The National Credit Committee shall ensure implementation in the Member State of such assistance as may be granted for the financing of its economic activity and development by the Central Bank according to the provisions of its Charter, the directives of the Council of Ministers of the Union, and the general rules laid down by the Board of Directors of the Central Bank.

Art. 55. The Committee shall be chaired by the Minister of Finance.

Meetings of the Committee shall be called by its Chairman, who shall prescribe the agenda upon recommendation by the Director of the agency.

Committee members who are unable to attend a meeting may empower another member of the Committee to represent them. No member of the Committee may have more than one vote in addition to his own.

The Director of the agency shall examine and report to the Committee on matters included in the agenda.

Committee decisions shall be adopted by a majority of its members present or represented. In case of a tie, the Chairman shall have the casting vote.

The Governor or the Deputy Governor of the Central Bank and the Directors on mission duty shall attend the Committee’s meetings with the right to speak in an advisory capacity.

Art. 56. The Committee shall estimate the amount needed to finance the activity and the development of the State and the resources available to meet these needs, as well as such assistance as may be contributed by the Central Bank, according to the provisions of its Charter, the directives of the Council of Ministers of the Union, and the general rules laid down by the Board of Directors.

He shall report accordingly to the Board of Directors and shall propose to it the overall amount of assistance to be granted by the Central Bank.

Art. 57. Within the limits of the overall amount decided on by the Board of Directors, the Committee shall determine the amounts of assistance that can be granted by the Central Bank:

to the banks and financial institutions in pursuance of the provisions of Articles 10 and 11 hereinabove, as regards short-term and medium-term assistance, respectively;

to the public Treasury by rediscounting customs duty bills issued to its order in pursuance of the provisions of Article 12 hereinabove;

to a central government and to local governments in pursuance of the provisions of Article 16 of this Charter.

Art. 58. Within the scope of the general rules laid down by the Board of Executive Directors, the National Credit Committee shall be empowered, in particular:

  • (1) to fix the minimum amount of credits the granting of which by a bank or a financial institution to one and the same enterprise shall be subject to its approval;
  • (2) to agree to, submit conditionally, or reject credit proposals that are thus presented to it;
  • (3) to set the individual limit on the various credits granted to one and the same enterprise that may be mobilized at the Central Bank;
  • (4) to fix the minimum amount or proportion of the various types of financing that may be employed by banks and financial institutions;
  • (5) to spell out the procedures for applying any other measures concerning the control and management of credits to the economy.

Art. 59. The Committee may delegate the exercise of its powers, in respect of the matters, limits, and conditions that it establishes, to the Director of the agency, who must report to it on the use made by him of such delegation of powers.

Art. 60. Decisions of the Committee shall be communicated by the Director of the agency to the Governor of the Central Bank.

The latter may propose to the Board of Directors that it revise such decisions of the Committee as would be inconsistent with the provisions of this Charter, the general rules for special decisions of the Board of Directors, or the directives of the Council of Ministers of the Union.

Title IV. Miscellaneous Provisions

section 1. accounting

Art. 61. Operations of the Central Bank shall be carried out and accounted for according to commercial and banking rules and usage.

section 2. tax exemptions

Art. 62. By reason of its international character and with a view to ensuring a fair distribution of its business profits, the Central Bank, its holdings, its property, its income, as well as the operations and transactions which it is authorized to carry out under this Charter, shall be exempt from all taxes, duties, and imposts levied by the States of the Union or local governments under them.

section 3. audit and approval of accounts

Art. 63. The accounts of the Central Bank shall be closed at least once a year at a date set by the Board; within the six months following the close of the financial year they shall be submitted to the Board of Directors for approval pursuant to a report of the Auditors.

Art. 64. The audit of the Central Bank’s accounts shall be carried out by National Auditors entrusted with the task of auditing the individual accounts of the agencies and an Auditor-Examiner entrusted with the task of centralizing the comments of the National Auditors and checking the centralized accounting of the Central Bank.

The National Auditors shall be designated, at the rate of one for each State, by the Minister of Finance of each Member State of the Union.

The Auditor-Examiner provided for in the first paragraph hereinabove shall be appointed by the Council of Ministers of the Union.

section 4. determination and distribution of earnings

Art. 65. For purposes of drawing up the profit and loss account, revenues shall be so applied as to give priority to covering the operating expenses of the headquarters and the agencies.

Art. 66. The Board of Directors shall determine the value at which claims held in suspense may remain included in the accounts on the assets side and shall proceed with any write-off and the setting up of any reserves that may be deemed necessary.

Art. 67. After discharging deficits of previous financial years and setting up reserves and appropriations for write-offs, the available excess revenues shall constitute earnings.

Earnings so defined shall be applied on a priority basis:

  • (1) To the financing of fixed assets and acquisitions of capital shares.
  • (2) To the payment of a statutory royalty in an amount equal to 12 per cent of the gross proceeds from the Central Bank’s operations in the course of the past financial year; the amount of this royalty is, however, limited to the amount of the earnings remaining for distribution if the latter amount is lower. The royalty so calculated shall be earmarked as will be indicated by the Council of Ministers of the Union.

From the remaining earnings, 15 per cent shall be taken to set up a statutory reserve. Setting aside such percentage shall cease to be compulsory as soon as this reserve amounts to one half of the capital; it shall be resumed if this ratio is no longer attained.

After allocations to any optional reserves, general or special, the balance shall be earmarked in pursuance of a decision of the Council of Ministers of the Union.

The reserves may be allotted to increases in capital.

Art. 68. Financial losses resulting from failure to recover credits shall be chargeable to the State concerned, which shall make payment within the month following approval, by the Council of Ministers of the Union, of the accounts of the financial year in the course of which such losses have been ascertained.

Deduction may be made, from the royalty or earnings paid to a State, of an amount equivalent to that of the result of multiplying the average negative position of the section of the liquid external assets account reflecting the operations of the State concerned by the average rate of interest applicable to the liquid assets of the Central Bank invested abroad or of any borrowings it might have effected to remedy an insufficiency of its external holdings.

Should the product as calculated above exceed the amount of royalty or earnings to which the State concerned is entitled, the difference would have to be paid by such State to the Central Bank within the month following approval of the accounts of the fiscal year.

section 5. monthly statements and annual report

Art. 69. Each month the Central Bank shall draw up a statement of its accounts, which shall be published in the Journal officiel of each of the States participating in its management.

Each month it shall likewise prepare a statement, by agency, of currency issued and of its counterparts.

Art. 70. A report on the development of the monetary situation of the Union and on the operations of the Central Bank in the course of each financial year shall be made to the Board of Directors by the Governor of the Central Bank for presentation to the Council of Ministers of the Union and to the Heads of State participating in the management of the Bank.

Agreement on Cooperation Between the French Republic and the Member Republics of the West African Monetary Union 1

The Government of the Republic of Ivory Coast,

The Government of the Republic of Dahomey,

The Government of the Republic of Upper Volta,

The Government of the Republic of Niger,

The Government of the Republic of Senegal,

The Government of the Togolese Republic,

The Government of the French Republic,

Determined to continue their relationship in a spirit of mutual understanding, reciprocal trust and cooperation, especially in the economic, monetary and financial areas;

Considering the resolution of the West African States that are parties to this Agreement to remain within a monetary union with a common central bank;

Desirous of having these common monetary institutions, supported by assistance from the French Republic, make the greatest possible contribution to the financing of the development of the States of the West African Monetary Union,

have agreed on the following provisions:

Art. 1. The French Republic shall lend assistance to the West African Monetary Union in order to enable it to ensure free convertibility of its currency.

The terms of that assistance shall be defined by an operations account Convention concluded between the Minister of Economy and Finance of the French Republic and the Chairman of the Council of Ministers of the Union acting on behalf of the Central Bank of the West African States.

Art. 2. Transactions between the French franc and the currency of the Union shall be effected at a fixed rate, on the basis of the parity in force.

Transactions between the currency of the Union and currencies other than the French franc shall be carried out at the exchange market rate according to the provisions agreed under Article 6 hereinafter.

Art. 3. The Member States of the Union agree to centralize their holdings in foreign currencies and other international means of payment under the terms set forth in the Convention referred to in Article 1.

Art. 4. The credit balance of the account referred to in Article 3 of this Agreement shall be guaranteed by reference to a unit of account agreed to by the parties.

Art. 5. The signatory States shall consult with each other, as far as at all possible, on the matter of changes they will propose to make in the definition of their currency and in the terms for trading that currency in the exchange markets.

The French Republic shall keep the Council of Ministers of the Union informed of the development of the condition of the French franc in the exchange markets and on any monetary matter of special interest to the Union.

Art. 6. The uniform regulations governing the external financial relations of the States of the Union, as laid down in pursuance of the provisions of Article 22 of the Treaty of November 14, 1973 Establishing the West African Monetary Union, shall be kept consistent with those of the French Republic.

This harmonization, agreed by the Board of Executive Directors of the Central Bank shall ensure, in particular, freedom of financial relations between France and the States of the Union.

If needs or circumstances should cause one of the Signatory Governments of this Agreement to find it necessary to depart from the harmonization agreed to in the preceding paragraphs, it would, before taking any relevant measure, so advise the other Signatory Governments with a view to reaching a concerted decision, according to the provisions of Article 13 of this Agreement.

Art. 7. The authorities of the French Republic and those of the Member States of the Union shall cooperate on bringing to light and curbing violations of the exchange regulations pursuant to terms to be set forth in a special protocol.

Art. 8. Pursuant to conditions to be agreed by them, the Bank of France and the Central Bank of the West African States shall exchange statistical data gathered by them on the payments and movements of claims and debts between France and the States of the West African Monetary Union.

Art. 9. The French Republic shall lend assistance in connection with the establishment and the financing of joint financial development institutions which the Council of Ministers of the Union would decide to create in pursuance of Article 23 of the Treaty of November 14, 1973 Establishing the West African Monetary Union.

These joint financing institutions shall be authorized to float loans in the French financial market and to borrow from French banks and credit institutions. Such loans may be guaranteed by the French Republic.

The terms of assistance lent by the French Republic for the purpose of implementing this article shall be the subject of appropriate agreements between the Minister of Economy and Finance of the French Republic, on behalf of the French Republic, and the Chairman of the Council of Ministers of the Union, on behalf of the joint institutions of the Union.

Art. 10. Two Executive Directors appointed by the French Government shall be members of the Board of Executive Directors of the Central Bank of West African States on the same terms and with the same rights and duties as the Executive Directors appointed by the Member States of the Union.

Art. 11. The French Republic acknowledges that the Central Bank of West African States shall, for its institutions and operations in its territory, enjoy the immunities, privileges and tax exemptions the enjoyment of which is acknowledged for it by the Member States of the Monetary Union and spelled out by Articles 4 and 62 of the Charter of the Central Bank.

Art. 12. In case any of the Member States of the Monetary Union should unilaterally fail to observe the commitments stipulated in this Agreement and in the Treaty of November 14, 1973, Establishing the West African Monetary Union, implementation of the Convention referred to in Article 1 hereinabove would de jure be suspended insofar as such State is concerned.

The same would apply in case of exclusion from the Monetary Union of one of its members, in pursuance of Article 4 of the Treaty of November 14,1973, Establishing the West African Monetary Union.

Art. 13. At the request of any Signatory State to this Agreement that would consider that the regime defined by this Agreement compromises or may compromise its interests substantially, the Signatory States would without delay take counsel together in order to decide on appropriate measures. If no decision could be adopted jointly, this Agreement could be denounced by any signatory.

If denounced by any Member State of the Union, this Agreement shall remain in force among the other Signatory States.

Should this Agreement be denounced, the Signatory States shall act in concert without delay in order to decide on new grounds for their cooperation in monetary matters and, possibly, on the terms of a transitional regime.

Art. 14. The provisions of this Agreement shall supersede any contrary provisions of the agreements and conventions listed hereinafter:

Agreement on Cooperation between the French Republic and the Member Republics of the West African Monetary Union, concluded on May 12, 1962 and supplemented by the Convention of November 27, 1963 among the same parties;

Agreement on Cooperation in Economic, Monetary and Financial Matters between the French Republic and the Republic of Ivory Coast, signed on April 24,1961;

Agreement on Cooperation in Economic, Monetary and Financial Matters between the French Republic and the Republic of Dahomey, signed on April 24, 1961;

Agreement on Cooperation in Economic, Monetary and Financial Matters between the French Republic and the Republic of Upper Volta, signed on April 24, 1961;

Agreement on Cooperation in Economic, Monetary and Financial Matters between the French Republic and the Republic of Niger, signed on April 24, 1961;

Agreement concluded between the French Republic and the Federation of Mali, on June 22, 1960, the rights and obligations of which the Republic of Senegal agreed to assume by an exchange of letters dated September 16 and 19, 1961;

Agreement on Cooperation in Economic, Monetary and Financial Matters between the French Republic and the Togolese Republic, concluded on July 10, 1963.

Art. 15. Subject to the necessary ratifications, this Agreement shall become applicable as of the effective date of the Treaty Establishing the West African Monetary Union, concluded on November 14, 1973 among the Member States of that Union.

{The signatory clause is omitted.}

Convention on the Operations Account 1

Between the undersigned,

Mr. Valéry Giscard d’Estaing, Minister of Economy and Finance, acting in the name of the French Republic,

on the one hand, and

Mr. Edouard Kodjo, Chairman of the Council of Ministers of the West African Monetary Union, acting in the name of the Central Bank of West African States and empowered to this end by decision of the Council of Ministers of the West African Monetary Union dated December 4, 1973, on the other hand,

the following has been agreed for purposes of applying the provisions of Article 1 of the Agreement on Cooperation between the French Republic and the Member Republics of the West African Monetary Union, concluded November 14, 1973:

Art. 1. A current account called “Operations Account” shall be opened in the accounting records of the French Treasury, in the name of the Central Bank of West African States, hereinafter called “Central Bank.”

Art. 2 The Central Bank shall pay into the Operations Account liquid assets that it may set up for itself outside its issue area, except:

(1) sums needed to meet current cash requirements;

(2) sums needed to meet liabilities incurred by the States of the Monetary Union vis-à-vis the International Monetary Fund and which it may have undertaken to meet pursuant to terms laid down in agreements concluded with these States and approved by the Council of Ministers of the Union;

(3) such sums as the Board of Directors of the Central Bank may decide to deposit in current accounts, denominated in foreign currencies, with the Bank for International Settlements or foreign banks of issue, or to use for subscription of negotiable notes, with a maturity not exceeding two years, expressed in convertible currencies, issued by international financial institutions whose purpose goes beyond the geographic scope of the West African Monetary Union and whose membership includes the Member States of this Union; the cumulative amount of the sums so deposited in foreign currencies or used for the subscription of notes denominated in foreign currencies other than the French franc may not exceed 35 per cent of the net external holdings of the Central Bank, exclusive of the gold tranche position 2 in the International Monetary Fund of the Member States of the Monetary Union and of the special drawing rights held by them which it would be authorized to count among its external holdings in pursuance of the agreements provided for in paragraph (2) of this article.

Art. 3. The Central Bank shall maintain the regular current account of the French Treasury in the towns where it has its own facilities.

The Operations Account shall be debited or credited, as the case may be, with the amount of transfers resulting from the leveling off or funding of this account.

Art. 4. In case of a change in the parity of the French franc in relation to the unit of account referred to in Article 4 of the Agreement on Cooperation, the guarantee shall be determined by taking into consideration:

on the one hand, the ratio existing on the day of the signing of this Convention between the official value of the French franc and that of the unit of account, and,

on the other hand, the ratio between these two values resulting from the change in the parity of the French franc.

If the second ratio is lower than the first, the increase coefficient obtained by dividing the ratio existing on the day of the signing of this Convention by that second ratio shall be applied to the credit balance of the Operations Account.

Art. 5. When developments in the liquid assets of the Central Bank in the Operations Account make it possible to anticipate that they will not suffice to meet the payments to be made against the debit thereof, the Central Bank:

shall supply it by drawing on such liquid assets as it may have set up for itself in foreign currencies;

shall invite the Member States of the Union to use their drawing rights at the International Monetary Fund or to exchange special drawing rights held by them for foreign currencies;

shall make use of its rights under the last two paragraphs of Article 20 of the Treaty of November 14, 1973 Establishing the West African Monetary Union.

Art. 6. If the measures taken in pursuance of Article 5 hereinabove do not allow the Central Bank to be sure that it will have available the liquid funds needed to cover the transfers outside the West African Monetary Union which it should effect, these means of payments shall be granted to it as an overdraft from its Operations Account.

Art. 7. When the Operations Account shows a debit balance, the Central Bank shall pay interest on such balance at a rate which shall be fixed as follows:

on the tranche comprising of between 0 and 5 million francs: 1 per cent

on the tranche comprising of between 5 and 10 million francs: 2 per cent

above 10 million francs: a rate equal to that fixed in the following paragraph.

When there is a credit balance, the average amount of funds on deposit in the course of each quarter shall bear interest at a rate equal to the arithmetic mean of the Bank of France’s intervention rates on the shortest term government securities during the quarter under consideration.

Art. 8. An Examiner designated by the Government of the French Republic and the Auditor-Examiner provided for by Article 64 of the Charter of the Central Bank shall supervise the implementation of the provisions of this Convention.

Upon request addressed to the Central Bank, they shall be given access to all records, statements or supporting documents that will enable them to carry out their mission.

Art. 9. Implementation of this Convention shall by right be suspended as provided in Article 12 of the Agreement on Cooperation between the French Republic and the Member States of the West African Monetary Union, concluded December 4, 1973.

The same shall be true in case notice of termination of the said Agreement is given in pursuance of the conditions provided for in Article 13.

Art. 10. Upon expiration or notice of termination of this Convention:

the debit balance of the Operations Account shall be subject to demand by the French Republic only in the territory of the States in which the Central Bank exercises the issue privilege and shall be settled in CFA francs; the credit balance shall be subject to demand by the Central Bank of West African States only in Paris, in French francs which shall be freely convertible.

Art. 11. The Convention on the Operations Account of March 20, 1963 between the French Republic and the Central Bank of West African States, as amended by supplementary agreements of June 2, 1967 and December 4, 1969, is abrogated as from the effective date of the Agreement on Cooperation between the French Republic and the Member Republics of the West African Monetary Union, concluded on December 4, 1973.

{The signatory clause is omitted.}

Agreement Establishing a West African Development Bank 1

The Government of the Republic of Ivory Coast,

The Government of the Republic of Dahomey,

The Government of the Republic of Upper Volta,

The Government of the Republic of Niger,

The Government of the Republic of Senegal,

The Government of the Togolese Republic,

Aware that membership in the West African Monetary Union and the management of their common currency by a single bank of issue, the Central Bank of West African States, assure them of the monetary institutions best suited to the progress of their national economies, the development of their mutual relations, their integration and their relations with other countries;

Considering, however, that currency unity alone cannot ensure equitable distribution among the member States of the means afforded them by membership in the Union to develop their economies;

Anxious to use the financing potential resulting from their unity in monetary matters to equip their economies, transform agricultural production, promote new activities, transfer ownership of the means of production to juridical persons, public or private, or to individuals who are nationals, especially in those areas most likely to promote integration of their economies;

Considering this objective could best be attained, without jeopardizing the position of their common currency, through a joint financing institution set up and administered in close cooperation with their joint bank of issue;

Recognizing the willingness of West African States to increase economic cooperation and promote economic integration together with equitable geographic distribution of development potential;

Considering the desire expressed by certain countries outside the Union to contribute to the development of the States of the West African Monetary Union;

have agreed to the following provisions:

Art. 1. A West African Development Bank shall be established. Its organization, management, and operations shall be defined by a Charter to be approved by the Council of Ministers of the West African Monetary Union under the provisions of Article 23 of the Treaty of November 14, 1973 establishing the Union.

Art. 2. This Agreement shall take effect when the State in which the Bank’s headquarters are to be located, at a date determined by agreement among the signatory Governments, has been notified of the ratification of the Agreement by the signatories.

{The signatory clause is omitted.}

Charter of the West African Development Bank 1

Art. 1. The West African Development Bank, hereinafter called the “Bank,” shall be incorporated, and shall carry out its functions and business in accordance with the provisions of Article 23 of the Treaty Establishing the West African Monetary Union, hereinafter called the “Union,” and this Charter.

Art. 2. The purpose of the Bank shall be to promote the balanced development of member States and achieve the economic integration of West Africa.

The Bank shall, directly, through subsidiaries, special funds set up by it, or national financial institutions, contribute towards:

  • 1. mobilizing funds available domestically in accordance with national legislation;
  • 2. obtaining foreign capital through loans or grants;
  • 3. financing investments or activities by acquiring capital holdings, extending loans, guaranteeing endorsements, or granting interest subsidies for the purpose of:
  • building or improving the infrastructure required for development;
  • improving conditions for, and means of, production;
  • establishing new businesses;
  • transferring title to means of production and distribution of goods and services to public or private juridical persons under the jurisdiction of the Union or of one of its Members, or to individuals who are nationals of the member States of the Union;
  • 4. preparing and evaluating development projects technically and financially, and establishing and operating the agencies entrusted with their implementation.

In selecting projects for assistance, it shall give priority to those most likely to:

  • facilitate the development of those member States of the Union least endowed with material resources;
  • promote the economic integration of the States of the Union.

Title I. Legal Status

section 1. 1—legal status

Art. 3. The Bank shall have the status of a juridical person with full enjoyment of the legal rights pertaining thereto, including in particular the capacity to contract, to acquire and dispose of real estate and assets, to receive gifts, bequests and endowments, and to appear in court.

It shall enjoy the fullest legal privileges accorded to juridical persons by each of the States of the Union under their national laws.

section 1.2—judicial proceedings

Art. 4. Litigation between the Bank, and its lenders, borrowers, or third parties shall be settled by the competent national courts, subject to the provisions of Article 5 hereinafter.

section 1.3—privileges and immunities

Art. 5. In order for the Bank to carry out its functions, it shall enjoy the immunities and privileges of international financial institutions in the territory of the States of the Union. However, when a State entrusts the Bank with an assignment under the terms of a special agreement, such immunities and privileges shall not apply if the agreement so stipulates.

  • 1. No proceedings may be initiated against the Bank by the member States of the Union, or by persons representing them or acting on their behalf.
  • 2. The Bank shall be exempt from the obligation of furnishing bond and advance payment in the course of judicial proceedings, whenever the laws of the States provide that this requirement shall be met.
  • 3. The Bank’s property and assets, wherever located and by whomsoever held, shall be exempt from any kind of attachment, claim, or enforcement until a final ruling has been made.
  • 4. The Bank’s property and assets, as defined above, shall be exempt from search, requisition, confiscation, expropriation, or any other form of seizure ordered by the executive or legislative authority of any member State.
  • 5. Its assets shall be safeguarded from any restrictive measures.
  • 6. The Bank’s records shall be inviolable.
  • 7. The Bank’s official communications shall enjoy the same treatment as official communications in all of the member States.
  • 8. The Bank’s assets and operations shall benefit from the tax exemptions under Article 38 below.

Title II. Participation, Capital, and Headquarters

section 2.1—membership of the bank

Art. 6. The members of the Bank participating in its capital and management are:

The member States of the West African Monetary Union;

The Central Bank of West African States, bank of issue of the Union, hereinafter called the “Central Bank”; and

Those States who, although not members, wish to provide assistance for its development and are approved by the Council of Ministers of the Union.

section 2.2—capital

Art. 7. The initial capital of the Bank shall be two billion four hundred million CFA francs, subscribed at the rate of:

one billion two hundred million CFA francs by the member States of the Union;

one billion two hundred million CFA francs by the Central Bank out of its own funds.

Art. 8. The capital of the Bank may be increased by cash contributions or incorporation of reserves.

It shall be increased with the admission of new members into the Union.

It shall be increased likewise by subscription of nonmember States of the Union, but their share of subscribed capital may not exceed one third of the total amount.

It may be reduced with the withdrawal of a member State or to cancel losses.

Art. 9. Upon ceasing to be a member of the Union, any member State shall cease to participate in the Bank.

Conditions for withdrawal shall be fixed by an agreement approved by the Council of Ministers of the Union, and the representatives of the withdrawing State shall not participate in the deliberations in this connection.

If the statement of debts and claims vis-à-vis the withdrawing State shows a credit balance for the Bank, such balance shall be taken from the external holdings to be surrendered by the Central Bank in connection with the transfer of currency to the State withdrawing from the Union.

section 2.3—headquarters

Art. 10. The Bank’s headquarters shall be established in one of the member States of the Union, by common agreement of the Heads of these States.

The Bank may establish an agency in each of the member States of the West African Monetary Union.

It may likewise, for its operating requirements, establish offices within or outside the Union.

Title III. Management

Art. 11. Under the direction and supervision of the Council of Ministers of the Union, the Bank shall be managed and administered by:

a President;

a Managing Board;

whose appointment and qualifications are set forth hereinafter.

Art. 12. The members of the Managing Board and the President must have full civil and political rights and must never have been sentenced to the loss of their freedom or civil rights.

Members of the Managing Board must not be selected from among executive directors, directors, or representatives, of banks, financial establishments or private enterprises unless they undertake such office on behalf of the State.

section 3.1—managing board

Art. 13. The Managing Board shall be composed of:

the President of the Bank, who shall act as Chairman;

one representative, and one alternate, appointed by each of the member States of the Union;

the Governor of the Central Bank, or his representative;

representatives of nonmember States of the Union, in proportion to the amount of capital subscribed by them, but not exceeding three, each having an alternate designated by him.

Any Board member unable to attend a meeting shall be represented by his alternate.

Art. 14. Meetings of the Board shall be convened by its Chairman, when necessary, and at least four times a year, either at his initiative, at the request of two thirds of the representatives of member States, or at the request of the Governor of the Central Bank.

Art. 15. The Board’s deliberations shall be considered valid when at least two thirds of the member States and the Central Bank are represented.

Decisions of the Board shall be adopted by a majority of votes.

The representatives of the Union’s member States on the Board shall have a total of six votes, the Governor of the Central Bank three votes, the representatives of the States that are not members of the Union shall have a number of votes to be determined on the basis of the capital subscribed by them, but which may not exceed three.

The President of the Bank shall not take part in the voting.

Art. 16. Within the framework of the guidelines it receives from the Council of Ministers of the Union, the Managing Board shall:

  • 1. decide increases or reductions in the capital of the Bank pursuant to the provisions of Articles 8 and 9 of this Charter;
  • 2. approve the Bank’s acquisition of capital holdings in enterprises or institutions;
  • 3. determine the rules governing loans and guarantees granted by the Bank;
  • 4. decide what financial assistance may be provided by the Bank under the provisions of Articles 26 to 29 of this Charter;
  • 5. decide on the loans to be contracted by the Bank;
  • 6. draw up the rules governing the use of the Bank’s available funds, subject to the provisions of Article 36 hereinafter;
  • 7. approve agreements to be concluded by the Bank for the purpose of accepting grants, setting up special funds, and managing and operating such funds;
  • 8. draw up the annual accounts of the Bank and the Annual Report on its activities.

Art. 17. The States’ representatives on the Managing Board may receive attendance fees, the amount of which shall be determined by the Council of Ministers of the Union.

section 3.2—the president and officers of the bank

Art. 18. The President of the Bank shall be appointed by the Council of Ministers of the Union for a nonrenewable six-year term.

He must be chosen so as to ensure that a national of each of the member States of the Union shall hold office in succession.

The President shall be assisted in the discharge of his duties by a Vice President, appointed by the Managing Board for a nonrenewable five-year term.

Art. 19. The President and Vice President of the Bank may not be chosen from among the incumbent or alternate representatives of the States of the Union on the Council of Ministers, on the Board of Directors of the Central Bank, on the National Credit Committees, or on the Managing Board of the Bank.

Their functions shall preclude them from work, whether remunerated or not, for any private or public enterprise, except international governmental institutions, were the occasion to arise.

The remuneration of the President shall be determined by the Council of Ministers of the Union, and that of the Vice President by the Managing Board.

Art. 20. The President of the Bank shall be responsible for the implementation of the provisions of this Charter and of the agreements concluded by the Bank.

He shall serve as Chairman of the Bank’s Managing Board and shall convene its meetings, draw up its agenda, and conduct its deliberations.

He shall be responsible for the implementation of the Managing Board’s decisions.

He shall submit the accounts of the Bank and the Annual Report on its activities to the Board.

Art. 21. The President shall represent the Bank vis-à-vis third parties.

He alone shall sign all instruments committing the Bank except agreements and conventions with governments, international institutions, and foreign institutions, where power to sign has been expressly delegated to the Chairman of the Council of Ministers of the Union.

He shall represent the Bank personally, or through persons delegated by him, at meetings of international institutions in which the Bank is invited to participate.

Art. 22. The President shall determine the organization of the Bank’s departments and the number of their staff. He shall direct their activities.

He shall hire, assign and discharge all officers of the Bank. He shall fix their remuneration as well as their pensions and all benefits in kind granted to them.

Art. 23. The President and the officers of the Bank shall be bound by professional secrecy and shall be subject to the penalties provided for under the penal code.

Art. 24. Officers of the Bank may neither take nor receive any share, interest or remuneration for work for, or advice to, any public or private industrial, commercial or financial institution, unless a waiver is exceptionally granted by the President of the Bank.

The provisions of this article do not apply to the production of scientific, literary or artistic works.

Title IV. Operations of the Bank

Art. 25. All the Bank’s operations must relate to its purpose as defined in Article 2 of this Charter.

section 4.1—bank assistance in financing economic development

Art. 26. The Bank may provide all or part of the capital of institutions and enterprises.

Such participation must be subscribed out of the Bank’s own funds.

Art. 27. The Bank may contribute, through an interest subsidy, in the payment of interest on loans taken up by the Union’s common agencies, by the States, by local governments and public institutions of the Union, and by agencies involved in promoting the development of their economies through the establishment or improvement of the basic infrastructure, the conversion of means of production, and the launching of new activities.

Such contributions must be made out of the Bank’s own funds or out of funds from grants placed at its disposal.

Art. 28. The Bank may grant loans to the Union’s common agencies, to the member States, to their local governments and public institutions and to agencies and enterprises involved in promoting the development or integration of the economies of the Union.

Art. 29. The Bank may by endorsement guarantee repayment of the principal of, and payment of interest on, loans from international or foreign financial institutions and from foreign governments to the beneficiaries listed in Article 28 hereinabove.

Art. 30. The conditions under which the Bank may grant loans and loan guarantees shall be specified in regulations issued by its Managing Board.

section 4.2—bank participation in mobilizing financing resources

Art. 31. The Bank may float loans on the internal market of the Union or on external financial markets and may contract loans with international or foreign public or private agencies, with maturities of any length and subject to any repayment conditions, both in currency of the Union and in foreign currencies or in units of account as will be deemed advisable by the Bank’s Managing Board.

Art. 32. Subject to the conditions set by the Central Bank, the Bank may rediscount paper mobilizing credits it has granted.

Art. 33. The Bank may accept grants, whether subject to earmarking and special conditions concerning their use or not, from international or foreign institutions, from States of the Union or from foreign States.

Collection and use of specially earmarked funds shall be recorded by the Bank in accounts opened for this purpose on its books.

section 4.3—bank contributions to organization and financing of money and financial markets of the union

Art. 34. The Bank may buy and sell shares in national or foreign business firms whose activities are of interest to the Union.

It may likewise buy and sell bonds issued by such firms.

Art. 35. The Bank may organize or help organize a financial market of the Union and contribute to its proper operation.

Art. 36. The current liquid assets of the Bank are deposited with the Central Bank, which shall be responsible for the Bank’s cash operations. These assets may be deposited in special interest-bearing accounts at the Central Bank and be used in the latter’s money market activities.

section 4.4—bank technical assistance

Art. 37. The Bank, through its own staff, that of its subsidiaries or specially hired consultants, shall assist in drawing up projects it intends to finance.

It may likewise provide technical assistance, on the same terms, for the organization, operation, and supervision of agencies and enterprises entrusted with executing projects financed or likely to be financed by it.

section 4.5—tax exemptions

Art. 38. The Bank, its income, its property and other assets, as well as the transactions and operations it carries out under this Charter, shall be exempt from all direct and indirect taxes.

The States and local governments of the Union shall levy no tax on bonds issued by the Bank or on the interest thereon, irrespective of the holder of these securities.

Title V. The Bank’s Accounts and Use of Its Profits

Art. 39. The Bank’s operations shall be carried out and recorded in accordance with commercial and banking rules and practice.

Entries shall be recorded in accordance with an accounting plan approved by the Central Bank.

Every month, the Bank shall draw up a statement of account and shall publish it in the Journal officiel of each of the States of the Union.

Art. 40. The Bank’s accounts shall be verified by an Auditor appointed by the Council of Ministers of the Union, which shall determine the level of his remuneration.

Art. 41. The accounts of the Bank shall be drawn up at least once a year on the same date as the accounts of the Central Bank. They shall be drawn up by the Managing Board.

The Managing Board shall determine the value of any overdue credits to be included on the assets side of the balance sheet, and shall constitute any reserves or make such allowances for depreciation it considers necessary.

After covering any deficits in respect of previous financial years, constituting any reserves, and deducting any allowances for depreciation, the outstanding balance shall constitute the revenue of the Bank.

The revenue so defined in its entirety shall be applied to the constitution of reserves.

Art. 42. Within the six months following the close of the financial year, the Bank’s accounts and the report of the Auditor appointed under Article 40 above shall be submitted to the Council of Ministers of the Union for approval.

These accounts shall be published in the Journal officiel of each of the States of the Union.

A report on the activities and operations of the Bank in the course of each financial year shall be submitted to the Managing Board by the President of the Bank, who shall subsequently submit it to the Council of Ministers of the Union. The Chairman of the Council of Ministers shall, in turn, submit this report to the Heads of States of the Union.

Title VI. Amendments to the Charter

Art. 43. The provisions of the Charter may be amended by unanimous decision of the Council of Ministers of the Union.

Decree No. 66-330 1

Organizing the National Credit Council 2

[September 5,1966]

The President of the Republic,

Considering the Constitution of the Republic of Ivory Coast;

Considering Law No. 65-252 of August 4, 1965, regulating credit and organizing the banking and related professions, particularly in its Article 25;

Considering Decree No. 66-45 of March 8, 1966, determining the powers of the Minister of Economic and Financial Affairs;

The Council of Ministers having been heard,

decrees:

Art. 1. The National Credit Council, provided for in Article 25 of Law No. 65-252 of August 4, 1965, 3 is placed under the chairmanship of the Minister of Economic and Financial Affairs, Chairman of the National Monetary Committee.

It is composed of the following members:

the Minister of Economic and Financial Affairs;

two representatives of the National Assembly;

two representatives of the Economic and Social Council;

two members of the National Monetary Committee, appointed by its chairman;

three representatives of the Professional Association of Banks, two of them representing deposit money banks and financial institutions, and one representing commercial banks;

the Chief Treasurer and Paymaster;

the Director of the Abidjan office of the Central Bank of West African States;

the Secretary General of the National Investment Fund;

the Director of Foreign Trade;

the Director of Consumer Affairs;

the Director of the Autonomous Amortization Fund;

an official appointed by the Minister of Posts and Telecommunications;

two experts in financial affairs appointed by the Minister in charge of Economic and Financial Affairs;

a high official appointed by the Minister in charge of Planning;

a representative of the Chamber of Commerce;

a representative of the Chamber of Agriculture;

a representative of the Chamber of Industry;

a representative of the General Labor Union of Ivory Coast.

The National Credit Council may form as many internal committees as necessary. The Director of the Central Bank of West African States shall sit on these committees, which may be supplemented, as necessary, by experts not belonging to the Council.

The Director of External Finance and Credit attends the sessions of the National Credit Council and its internal committees.

The Secretariat of the National Credit Council is provided by the Central Bank of West African States.

Art. 2. At the Government’s request, the National Credit Council may be asked to carry out any kind of research relating to the direction of credit policy, the distribution of credit, or the organization of the banking profession.

It submits its conclusions to the Minister for Economic and Financial Affairs, who instructs the Commission for the Control of Banks and Financial Establishments to execute the decisions adopted.

Art. 3. The National Credit Council meets when convened by its chairman at least twice a year or at the request of two thirds of its members.

At least half of the titular members of the National Credit Council shall constitute a quorum.

Art. 4. The National Credit Council shall receive from all ministerial departments, all public or quasi-public agencies, the Central Bank of West African States, and banks and financial establishments all the documents necessary for the fulfillment of its mission.

Art. 5. This decree shall be published in the Journal officiel of the Republic of Ivory Coast and communicated wherever necessary.

{The signatory clause is omitted.}

Decree No. 66-331 1

Organizing the Commission for the Control of Banks and Financial Establishments 2

[September 5,1966]

The President of the Republic,

Having regard to Law No. 65-252 of August 4,1965 regulating credit and organizing the banking and related professions, particularly Article 25 of that law; 3

Having regard to Decree No. 66-45 of March 8, 1966, determining the functions and powers of the Minister in charge of Economic and Financial Affairs;

The Council of Ministers having been heard,

decrees:

Art. 1. The Commission for the Control of Banks and Financial Establishments shall be composed of the following members:

Chairman: The Director of External Finance and of Credit.

Vice-Chairman: The Director of the Abidjan Office of the Central Bank of West African States.

Members:

The Chief Treasurer and Paymaster;

A counselor of the Chamber of Accounts appointed by the President of the Supreme Court;

A member of the National Monetary Committee appointed by its chairman.

Art. 2. The Commission for the Control of Banks and Financial Establishments shall meet when convened by its chairman or at the request of at least three of its members.

Not less than three of its members shall constitute a quorum.

Art. 3. The Commission for the Control of Banks and Financial Establishments shall give its opinion on the creation of new banks or financial establishments and on the opening of additional counters. It shall be responsible for executing the decisions of the Minister for Economic and Financial Affairs and for supervising implementation of the regulation of the banking profession. It shall have power of initiative for control of documents and on-premises inspection, shall make rulings in response to any requests that may be addressed to it by the Minister for Economic and Financial Affairs, the Central Bank of West African States, or the Professional Association of Banks, and, in accordance with Article 7 of this decree, shall penalize violations noted.

Art. 4. The Commission for the Control of Banks and Financial Establishments may appoint a liquidator to the banks or financial establishments which have been removed from the registration list and which have received notice that they must cease their operations within a fixed period.

When the administration, management, or directorate of a bank or financial establishment can no longer, whatever the reason for the deficiency, be exercised by persons properly empowered to do so, the Commission may designate to such bank or financial establishment an interim administrator, upon whom it shall confer the necessary powers for the administration, management, or directorate.

Art. 5. The Commission for the Control of Banks and Financial Establishments shall exercise its authority on the basis of balance sheets and periodic statements which shall be submitted to it, and by means of data, clarifications, and supporting documents which it may ask for in accordance with Article 24 of Law No. 65-252 of August 4, 1965. 4

Moreover, it may cause all necessary checks to be effected on the spot, by the officers it appoints.

Art. 6. The Commission for the Control of Banks and Financial Establishments shall draw up, prior to March 31 of each year, a report in which it shall summarize its findings and formulate any suggestions which it considers necessary with regard to the structure and general organization of banking and financial establishments.

This report shall be sent to the Minister for Economic and Financial Affairs who shall communicate it to the National Credit Council.

Art. 7. If the control exercised by the Commission for the Control of Banks and Financial Establishments shows that an establishment has violated the rules established by the above-mentioned law or by the regulations laid down in application of this law, the Commission for the Control of Banks and Financial Establishments shall levy disciplinary sanctions, without prejudice to the applicable penal sanctions, which are, by order of severity:

a warning;

a reprimand;

prohibition of certain operations and any limitations in the exercise of the profession;

suspension of the officials responsible, with or without the appointment of an interim administrator;

proposal to the competent monetary authorities for the limitation or discontinuance of any facilities from the Central Bank of West African States;

proposal that the institution be struck off the list of banks or the list of financial establishments.

The decision of the Commission for the Control of Banks and Financial Establishments must be handed down with a statement of reasons: they must also specify, if applicable, the conditions and time limits for their implementation. They may only be appealed before the Supreme Court for action ultra vires. This appeal operates as a stay, unless the Control Commission decides on urgent measures.

Art. 8. The sanctions pronounced by the Control Commission are valid only if the interested parties or their representatives have been convened and heard.

When they have been called upon to appear before the Control Commission, the parties concerned may be represented or counseled by a lawyer called to a bar, by a member of the Professional Association of Banks or by the manager of an establishment which is an individual or joint member of said association.

The other procedural rules shall be determined by order of the Minister for Economic and Financial Affairs.

Art. 9. All decisions of the Commission for the Control of Banks and Financial Establishments shall be communicated to the National Credit Council.

Art. 10. The present decree shall be published in the Journal officiel of the Republic of Ivory Coast and communicated wherever necessary.

{The signatory clause is omitted.}

Order No. 23 1

Determining the conditions in which the Commission for the Control of Banks and Financial Establishments may ensure its operating costs

[January 5,1967]

Art. 1. The expenditures incurred by the Commission for the Control of Banks and Financial Establishments shall be borne by the Professional Association of Banks which shall divide them every six months among its members.

Art. 2. The Professional Association may, at the beginning of each six-month period, request the banks and financial establishments to make a provisional payment calculated on the basis of the estimates of the expenditures of the Commission for the Control of Banks and Financial Establishments.

Art. 3. The payments provided for in Articles 1 and 2 hereinabove shall, for each bank or financial establishment, be calculated in proportion to the amount of its balance sheet made up as at September 30 of each year plus its rediscount commitment as of that date.

Art. 4. Each bank or financial establishment shall be debited for the entire six-month period, even if incomplete, in which it has appeared on the official lists.

Art. 5. The receipt and expenditure accounts of the Commission for the Control of Banks and Financial Establishments shall be kept by the Central Bank, to which the secretariat of that body shall be entrusted. They must be communicated annually to the Minister of Economic and Financial Affairs.

Art. 6. This Order shall be published in the Journal officiel of the Republic of Ivory Coast.

{The signatory clause is omitted.}

Decree No. 66-172 1

Making it obligatory for banks and financial establishments to form a Professional Association of Banks and Financial Establishments 2

[April 26,1966]

The President of the Republic,

Having regard to Law No. 65-252 of August 4, 1965, regulating credit and organizing the banking and related professions;

Having regard to Decree No. 66-45 of March 8, 1966, determining the functions and powers of the Minister in charge of Economic and Financial Affairs;

The Council of Ministers having been heard,

decrees:

Art. 1. In accordance with the provisions of Article 26 of Law No. 65-252 of August 4, 1965,3 the authorized banks in Ivory Coast are to set up a Professional Association of Banks and Financial Establishments and to become members of it.

Art. 2. The approved financial establishments in Ivory Coast are to belong to this association.

Art. 3. The Professional Association of Banks and Financial Establishments shall be governed by the provisions of Law No. 60-315 of September 21, 1960; it is placed under the control of the Minister for Economic and Financial Affairs. Its by-laws shall be approved by the Minister for Economic and Financial Affairs and published in the Journal officiel.

Art. 4. No other professional association, and no other trade union grouping of banking or financial establishments, may, from promulgation of this decree, represent such establishments vis-à-vis the public authorities.

Art. 5. An order from the Minister for Economic and Financial Affairs shall determine the circumstances in which the Professional Association of Banks and Financial Establishments shall take over the operating expenses of the Commission for the Control of Banks and Financial Establishments.

Art. 6. This decree shall be published in the Journal officiel of the Republic of Ivory Coast.

{The signatory clause is omitted.}

Law No. 75-549

On regulation of banks 1

[August 5,1975]

The National Assembly has adopted,

The President of the Republic promulgates the law worded as follows:

Title I. Scope of Application of the Banking Regulations

Art. 1. This law shall apply to banks and financial institutions conducting business in the territory of Ivory Coast, regardless of their legal status, the location of their registered or main office, and the nationality of the owners of their capital or the nationality of their officers.

Art. 2. This law shall not apply, however:

to the Central Bank of West African States, hereinafter called the Central Bank;

to international financial institutions or to official foreign aid and cooperation institutions whose operations in the territory of Ivory Coast are authorized by treaties, agreements, or conventions to which Ivory Coast is a party;

to the Office of Posts and Telecommunications, except for the provisions of Article 47.

Articles 20–31 of this law shall not apply to the special-status banks and public financial institutions included on the list to be drawn up by the Council of Ministers of the West African Monetary Union. In addition, the Council of Ministers of the West African Monetary Union may exclude these banks and financial institutions in whole or in part from the scope of application of this law, except for Articles 43–46 and Article 60.

Art. 3. Enterprises whose normal business is to receive funds which may be drawn by check or transfer and which they employ, for their own account or for the account of others, in credit or investment operations shall be deemed to be banks.

Art. 4. Natural or juridical persons, other than banks, whose normal business is to conduct for their own account credit operations, operations involving sales on credit or the financing of sales on credit, or exchange operations, or which normally receive funds they employ for their own account in investment operations, or which normally serve as agents or brokers or other intermediaries in the aforementioned operations, shall be deemed to be financial institutions.

Art. 5. Loans, discounts, temporary advances against collateral, acquisition of claims, guarantees, financing of credit sales, and leases shall be deemed to be credit operations.

All acquisitions of equity in existing enterprises or in enterprises in the process of formation, and any acquisition of securities issued by government or nongovernment entities, shall be deemed to be investment operations.

Art. 6. The following shall not be deemed to be banks or financial institutions:

(a) Insurance companies and retirement funds;

(b) Notaries and ministry officials in the exercise of their duties;

(c) Stock and commercial brokers.

However, all enterprises, funds, and persons specified in this article shall be subject to the provisions of Article 69.

Title II. Authorization of Banks and Financial Institutions

chapter i. authorization of banks

Art. 7. No entity may engage in the activities defined in Article 3, or describe itself as a bank or a banker, or cause the terms “bank,” “banker,” or “banking” to appear in any language in its appellation, trade name, or publicity, or make any use of them whatsoever in its activities, unless and until it has been authorized and registered on the list of banks.

Art. 8. The conditions and procedures governing the authorization of banks and the withdrawal of such authorization shall be set by decree.

Art. 9. All requests for authorization shall be presented through the Central Bank. The Minister of Economy and Finance shall be responsible for issuing and withdrawing authorization.

Authorization shall be formalized by registration on the list of banks, and withdrawn by striking from that list.

The list of banks shall be drawn up and kept current by the Central Bank. Each Bank shall be assigned a registration number.

The initial list of banks, and all amendments to it, including the striking of entries, shall be published in the Journal officiel.

Art. 10. Banks must show their bank registration numbers in the same circumstances, on the same documents, and under penalty of the same sanctions as applicable with regard to the commercial register.

Art. 11. Banks struck from the list of banks shall cease operations within the time period set in the decision to withdraw authorization.

chapter ii. authorization and classification of financial institutions

Art. 12. No entity may engage in any of the activities defined in Article 4 unless and until it has been authorized and registered on the list of financial institutions.

The conditions and procedures governing authorization of financial institutions and the withdrawal of such authorization shall be set by decree.

The provisions of Articles 9 through 11 shall apply to financial institutions.

Art. 13. Financial institutions may be classified by decree into different categories on the basis of their activities.

No financial institution in any given category shall engage in the activities of other categories without prior approval granted in the same way as the authorization.

Title III. Directors and Personnel of Banks and Financial Institutions

Art. 14. No one may direct, administer, or manage a bank, a financial institution, or an agency thereof who is not a national of Ivory Coast or a member country of the West African Monetary Union, unless he is granted the status of an Ivorian national for this purpose under the terms of the founding agreement.

The Minister of Economy and Finance may grant individual exemptions from the provisions of this article.

Art. 15. Anyone convicted of a common crime, of forgery or the use thereof in private, commercial, or bank accounting, of theft, of fraud or offenses punishable as fraud, of breach of trust, of bankruptcy, of embezzlement of public funds, of withdrawal by a public depository, of extortion of monies or securities, of issuing checks without cover, of undermining the Government’s credit standing, or of concealing anything obtained through these infractions, shall be disqualified from all of the following:

directing, administering, or managing any bank or financial institution, or any agency thereof;

engaging in any of the activities defined in Article 4; and

proposing to the public the establishment of any bank or financial institution.

Any person who has been convicted of an attempt to commit any of the aforementioned infractions, or of complicity in them, shall also be so disqualified.

Persons whose bankruptcy has not been repealed, ministerial officials who have been removed from office, and executives suspended under the terms of Article 53 shall be similarly disqualified.

Any person who has been convicted, declared bankrupt, or removed from office in a foreign country shall also be so disqualified. In such an event, the government ministry or the person concerned may apply to the criminal court for a finding as to whether or not the conditions entailing disqualification have been fulfilled.

The court shall rule after weighing the propriety and the legality of the foreign decision and after duly granting a hearing to the person concerned.

In the event a decision resulting in disqualification as provided for in this article is subsequently repealed or invalidated, the disqualification shall terminate automatically unless the new decision can be appealed.

Art. 16. Any person who contravenes any of the proscriptions imposed by Article 14 or 15 shall be punished by imprisonment for a term of six months to two years or a fine of CFAF 1,000,000 to CFAF 2,000,000, or both.

Art. 17. No person convicted of any of the deeds specified in the first two paragraphs of Article 15 or in Article 16 may be employed in any capacity by a bank or a financial institution. The provisions of Article 15, paragraphs 4 and 5, shall apply to this prohibition.

In the event the prohibition is contravened, the infractor shall be subject to the punishments provided for in Article 16, and the employer to a fine of CFAF 1,000,000 to CFAF 2,000,000.

Art. 18. Every bank and every financial institution must deposit, with the Central Bank and the court officer maintaining the commercial register, a full list of the persons directing, administering, and managing the bank or financial institution and its agencies, and must keep said list up to date.

The court officer shall furnish the district attorney, within a week, with a copy of the list on unstamped paper.

Art. 19. All persons involved in the direction, administration, management, audit, and operation of any bank or financial institution shall be bound by professional confidentiality.

Title IV. Regulations Governing Banks and Financial Institutions

chapter i. legal status

Art. 20. Banks shall be constituted as companies or other juridical persons.

Banks domiciled in Ivory Coast shall take the form of joint-stock companies with fixed capital.

Art. 21. Financial institutions domiciled in Ivory Coast shall take the form of joint-stock companies with fixed capital, limited liability companies, or cooperative companies with variable capital.

Natural persons may be forbidden by decree to engage in all or part of the activities defined in Article 4.

The legal form to be adopted by the various categories of financial institutions may be prescribed by decree.

Art. 22. All shares issued by banks or financial institutions domiciled in Ivory Coast shall be registered shares.

chapter ii. capital and special reserve

Art. 23. The registered capital of banks and financial institutions domiciled in Ivory Coast shall not be less than a minimum to be set by decree. This minimum need not be the same for banks and for the various categories of financial institutions.

The registered capital shall be fully paid up, up to the minimum amount provided for above, at the time the bank or financial institution is established.

Art. 24. Banks and financial establishments that will need to increase their registered capital in order to meet the prescribed requirement shall have six months to do so.

Art. 25. Banks and financial institutions domiciled abroad may be required to prove at any time that they have appropriated for their transactions in Ivory Coast resources at least equal to the minimum amount provided for in Article 23.

Art. 26. Subject to the provisions of Article 28, the paid-in proprietary capital of any bank or financial institution must at all times be at least equal to the minimum amount referred to in Article 23, and may not be less than the minimum amount of paid-in proprietary capital that may be prescribed pursuant to Article 48, paragraph 2.

A directive to be issued by the Central Bank shall define what constitutes paid-in proprietary capital for the purposes of this article and of Article 48.

Art. 27. Banks and financial institutions with the status of juridical persons shall be required to constitute a special reserve, including any legal reserve that may be required by the laws and regulations in force. Fifteen per cent of accrued net profits shall be set aside annually for maintenance of this special reserve.

The special reserve of the banks and financial institutions specified in Article 25 shall be over and above the appropriation required under the terms of that article.

Art. 28. Financial institutions not endowed with the status of juridical persons shall be required to hold a bank guarantee furnished by an authorized bank in a member State of the West African Monetary Union, in an amount equal to the minimum provided for in Article 23.

chapter iii. miscellaneous authorizations

Art. 29. The following shall require prior authorization from the Minister of Economy and Finance:

Any merger, by takeover or by the creation of a new company, and any split involving a bank or financial institution domiciled in Ivory Coast;

The early winding-up of any bank or financial institution domiciled in Ivory Coast; and

Any acquisition of equity in a bank or financial institution domiciled in Ivory Coast that would result in raising, directly or through an intermediary, the holdings of any single natural or juridical person, first above 20 per cent and then above 50 per cent of the registered capital of that bank or financial institution.

All banks and financial institutions domiciled abroad shall inform the Minister of Economy and Finance of any merger, early winding-up, or acquisition of equity under the terms of the preceding paragraph, in which they may be involved.

The following, in particular, shall be deemed to be intermediaries of a single natural or juridical person:

Juridical persons more than 50 per cent of whose registered capital is held by that person;

Subsidiary companies, namely, companies more than 50 per cent of whose registered capital is held by the corporations referred to in the preceding subparagraph, or by the corporations referred to in the preceding subparagraph and by the natural or juridical person concerned, taken together; and

Subsidiaries of subsidiary companies within the meaning of the preceding subparagraph.

Art. 30. The following shall also require prior authorization from the Minister of Economy and Finance:

Any assignment by a bank or financial institution of more than 20 per cent of those assets earmarked for its operations in Ivory Coast;

Any management contracting all its operations in Ivory Coast; and Any opening, closing, conversion, transfer, assignment, or management contracting of an office or agency in Ivory Coast.

Art. 31. Prior authorizations under the terms of this chapter shall be granted as in the case of bank authorization. However, authorizations under the terms of the last subparagraph of Article 30 may be granted by the Central Bank under the delegated authority of the Ministry of Economy and Finance.

chapter iv. operations

Section I: Bank Operations

Art. 32. The equity held by a bank in any single enterprise may not exceed 25 per cent of the enterprise’s capital, or 15 per cent of the bank’s paid-in proprietary capital, unencumbered by contractual obligations, as defined by a directive from the Central Bank.

The provisions of the preceding subparagraph shall not apply to the following acquisitions of equity:

in other banks or financial institutions;

in real estate companies, subject to the provisions of Articles 33 and 34.

Art. 33. Banks may not hold equity in real estate companies or own real estate in excess of an aggregate amount of 15 per cent of their paid-in proprietary capital unencumbered by contractual obligations.

Without prejudice to the provisions of Article 34, the terms of the preceding subparagraph shall not apply to transactions relating to such real estate as is required for the banks’ operation or for the housing and welfare of their personnel.

Art. 34. The total equity and fixed capital held by a single bank in other enterprises, excluding any operations financed with funds other than its own, may not exceed the total of the bank’s paid-in proprietary capital unencumbered by contractual obligations.

Art. 35. The provisions of Articles 32 through 34 shall not apply to assets acquired by the banks in the process of claims conversion, provided such assets are disposed of within one year.

Art. 36. Banks shall be prohibited from engaging in commercial, industrial, agricultural, or service activities, on their own behalf or on another’s, except insofar as such operations are required for, or accessory to, the pursuit of their banking activity, or necessitated by claims conversion.

Art. 37. The credit granted by any bank to a single natural or juridical person, or to any group of natural or juridical persons whose interests are closely bound, may not exceed the total amount of the bank’s paid-in proprietary capital as defined by a Central Bank directive.

The following, in particular, shall be deemed to be groups of persons whose interests are closely bound:

Juridical persons and their executives, where credits granted to the latter are intended to be used for activities of the juridical person;

Natural or juridical persons jointly pursuing an activity for which the credits are intended; and

Groups consisting of a natural or juridical person and of persons considered intermediaries within the meaning of Article 29.

The provisions of this article shall not apply to the following:

Agricultural credits granted to institutions under direct or indirect government control;

Credits secured by government contracts or by export products whose market value is generally agreed or has been checked by the Central Bank, provided such credits do not exceed an amount fixed by Central Bank directive;

Credits granted to the Treasury or guaranteed by it; and

Credits to other banks.

A Central Bank directive shall define agricultural credits for the purposes of this law.

Art. 38. Banks are prohibited from purchasing their own shares or accepting them as collateral for their loans.

Art. 39. Banks are prohibited from directly or indirectly granting credits in excess of an aggregate amount equal to 20 per cent of their paid-in proprietary capital to any persons performing executive, administrative, managerial, audit, or operational duties for them.

The same prohibition shall apply to credits granted to private enterprises headed, administered, or managed by aforementioned persons or in which such persons hold more than one fourth of the registered capital.

The provisions of this decree shall not apply to credits secured by government contracts or by export products whose market value is generally recognized or has been verified by the Central Bank, provided that such credits do not exceed an amount fixed by the latter’s directive.

Art. 40. The Minister of Economy and Finance may, after consultation with the Central Bank, grant individual exemptions from the provisions of this section.

Section II: Operations of Financial Institutions

Art. 41. The operations of the various categories of institutions shall be regulated by decree in accordance with the nature of their activities.

Art. 42. Financial institutions shall accept deposits of funds from the public only if they are authorized to do so by decree and insofar as such acceptance is consistent with their activities and with the terms of the authorizing decree.

chapter v. accounts and reporting to the central bank

Art. 43. Banks and financial institutions shall close their financial year on September 30 of each year.

They shall maintain at their head office, their main establishment, or their main agency in Ivory Coast, specific accounting records of their transactions on the Republic’s territory.

Art. 44. Banks and financial institutions shall forward to the Central Bank by December 31 of each year, in accordance with the rules and forms prescribed by the Central Bank, the following:

their balance sheet;

their operating account; and

their profit and loss account.

The validity and accuracy of these documents shall be certified by an auditor selected from the list of auditors approved by the Court of Appeals.

The annual balance sheet shall be published in the Journal officiel.

The cost of publication shall be borne by the Bank.

Art. 45. Banks and financial institutions shall draw up statements of their assets and liabilities in the course of the financial year, at intervals set by the Central Bank and in the form prescribed by it. The Central Bank shall collect and examine all these documents and forward them, with its assessment, to the Commission for the Control of Banks and Financial Establishments to be established under the terms of Article 50.

Art. 46. All banks and financial institutions shall be required to provide the Central Bank, at its request, with any information, explanations, evidence, and documents deemed useful to assess their position and risks, to draw up a list of unpaid checks and commercial bills, and, generally, to enable the Central Bank to perform its duties.

Art. 47. The terms of Article 46 shall apply to the Office of Posts and Telecommunications as regards its financial and postal checking operations.

Title V. Rules of the West African Monetary Union

Art. 48. Pursuant to Article 11 of the Treaty Establishing the West African Monetary Union, the Council of Ministers of the West African Monetary Union may take any decisions that would:

Require banks and financial institutions to establish obligatory reserves and to deposit them with the Central Bank, to maintain ratios between the various components of their resources and uses, or to impose maximum or minimum amounts for certain uses;

Set the rates and terms of any transactions of the banks and financial institutions with their customers.

Among others, such decisions could set the minimum paid-in proprietary capital ratio and the minimum cash ratio to be maintained by the banks and the various categories of financial institutions, without prejudice to the terms of Article 26.

The Central Bank shall notify the banks and financial institutions of any decisions under the terms of this article.

The implementation of these decisions shall be governed by directives to be issued by the Central Bank.

Art. 49. Banks and financial institutions shall comply with any Central Bank decisions taken in the exercise of the powers vested in it by the aforementioned treaty and by its charter annexed to the treaty.

Title VI. Control and Sanctions

chapter i. control

Art. 50. A Commission for the Control of Banks and Financial Establishments, hereafter referred to as the Control Commission, shall be established. Its composition and operations shall be prescribed by decree.

The Control Commission shall determine whether banking regulations have been violated and shall determine what disciplinary action is to be taken against the violators.

The members of the Control Commission and any persons participating in its activities shall be bound by professional secrecy. The members of the Commission, except those representing the Government, shall hold no position, paid or unpaid, in a bank or financial institution, nor shall they receive any remuneration, direct or indirect, from any bank or financial institution.

The Central Bank shall act as secretariat to the Control Commission.

Art. 51. It shall be the task of the Central Bank to satisfy itself that banking regulations are respected. To this end, the Bank may, on its own initiative or at the request of the Control Commission, undertake any audit of the documents or inspection.

Art. 52. The Central Bank shall inform the Control Commission of any violations of banking regulations known to it.

chapter ii. disciplinary sanctions

Art. 53. In the event the Control Commission, acting on a report from the Central Bank or a request from the Minister of Economy and Finance, should find that a bank or a financial institution has violated the banking regulations, it shall apply the following disciplinary sanctions, without prejudice to other applicable penalties or other sanctions:

warning;

censure;

suspension or prohibition of certain operations, or any other limitations on the conduct of business;

suspension of the executives responsible, with or without the appointment of a temporary administrator;

striking from the list of banks or financial institutions.

Art. 54. No disciplinary sanction may be taken by the Control Commission unless the party concerned or its representative has been duly heard or summoned.

Art. 55. The Control Commission’s decisions must be based on the evidence of reason. Their implementation shall require prior approval by the Minister of Economy and Finance.

chapter iii. punitive sanctions

Art. 56. Any person contravening, on his own behalf or on another’s, the terms of Article 7, Article 12, or Article 13, subparagraph 2, shall be punished by imprisonment for a term of one month to two years, by a fine of CFAF 2,000,000 to CFAF 20,000,000, or both.

For second offenders, the maximum penalty shall be raised to five years’ imprisonment and a fine of CFAF 50,000,000.

Art. 57. Any person who, acting on his own behalf or on another’s, knowingly provides the Central Bank with inaccurate documents or information, or offers opposition to any audit or inspection effected by the Central Bank under the terms of Article 51, shall be punished by imprisonment for a term of one month to one year, by a fine of CFAF 1,000,000 to CFAF 10,000,000, or both.

For second offenders, the maximum penalty shall be raised to two years’ imprisonment and a fine of CFAF 20,000,000.

Art. 58. Any bank or financial institution that contravenes the terms of Articles 18, 27, 30, last subparagraph, 44, 45, or 46, or decisions under the terms of Article 48 or 49, shall be punished by a fine of CFAF 1,000,000 to CFAF 10,000,000, without prejudice to the sanctions provided for in Chapter IV of this title.

The same penalty may be imposed on the executives who were responsible for the violation.

Persons acquiring equity in a bank or financial institution in contravention of the terms of Article 29 shall be subject to the same penalty.

chapter iv. other sanctions

Art. 59. Any bank or financial institution that fails to establish any obligatory reserve instituted under the terms of Article 48 with the Central Bank, or fails to sell its foreign exchange holdings to the Central Bank if required to do so pursuant to Article 18 of the Bank’s charter, shall be charged interest by the Central Bank on overdue payments at a rate not to exceed 1 per cent each day of delay.

Art. 60. Any bank or financial institution that fails to provide the Central Bank with documents or information as provided for in Articles 44, 45, or 46, may be charged the following penalties each day of delay:

CFAF 10,000 during the first 15 days;

CFAF 20,000 during the following 15 days;

CFAF 50,000 thereafter.

The penalties shall be collected by the Central Bank for the account of the Treasury.

Art. 61. Any bank or financial institution that contravenes West African Monetary Union regulations requiring it to maintain ratios between the various components of its resources and uses, or to maintain maximum or minimum amounts for certain uses, may be required by the Central Bank to make a noninterest-bearing deposit with it in an amount not to exceed 200 per cent of such irregularities as have been found for a period not to exceed the period of the violation.

In the event of delay in making such a deposit, the provisions of Article 59 relating to interest on overdue payments shall apply.

Art. 62. Any bank or financial institution that contravenes West African Monetary Union regulations setting the rates and terms of its transactions with customers or requiring prior authorization for the grant to any single enterprise of credits in excess of a specified amount, may be required by the Central Bank to make a noninterest-bearing deposit with it in an amount not to exceed 200 per cent of such irregularities as have been found for a period not to exceed one month, or, in the event of remuneration improperly collected or paid, in an amount not to exceed 500 per cent of such remuneration.

In the event of delay in making such a deposit, the provisions of Article 59 relating to interest on overdue payments shall apply.

Art. 63. Penalties for delays, and interest on overdue payments, pursuant to Articles 60, 61, 62, shall not begin to accrue before ten clear days have elapsed since the receipt, by the bank or financial institution concerned, of a formal notice delivered by the Central Bank.

Art. 64. Decisions taken by the Central Bank pursuant to the provisions of this chapter can be appealed only to the Council of Ministers of the Monetary Union. The Council shall prescribe the conditions governing such appeals.

Title VI. Miscellaneous Provisions

chapter i. provisions common to banks and financial institutions

Art. 65. Every bank or financial institution must, within one month of its registration on the list of banks or financial institutions, join the Professional Association of Banks and Financial Establishments.

The charter of the Association shall be subject to the approval of the Minister of Economy and Finance.

Art. 66. The Minister of Economy and Finance may, after consultation with the Central Bank, suspend all, or part of, the operations of any bank and financial institution. Such a suspension may not exceed six working days. It may be extended by another six working days in the same manner.

Art. 67. In the event the persons legally empowered to direct, administer, or manage a bank or a financial institution should for any reason no longer be able to do so, or in the event the manner in which a bank or financial institution is managed should endanger the funds deposited there, the Minister of Economy and Finance may, after consultation with the Control Commission and the Central Bank, designate a temporary administrator whom he shall vest with the powers required to direct, administer, or manage the bank or financial institution concerned.

Art. 68. The Minister of Economy and Finance may, after consultation with the Control Commission, appoint a liquidator for banks and financial institutions that have been struck from the list of banks and financial institutions, or that were not registered on the list and have been notified they must cease operations.

chapter ii. other provisions

Art. 69. The enterprises, funds, and persons specified in Article 6 shall, under penalty of the sanctions provided for in Article 58, provide the Central Bank, at its request, with the information and documents it requires in order to discharge its duties as defined in the Treaty Establishing the West African Monetary Union, in its charter, and in the laws and regulations in effect.

The provisions of Article 57 shall apply in the event the documents or information provided are inaccurate.

Art. 70. No natural or juridical person, other than a bank or financial institution, whose business it is, as his principal or accessory activity, to create business for banks or financial institutions or to do business on their behalf, shall engage in such activity without prior authorization from the Minister of Economy and Finance. Requests for such authorizations shall be examined by the Central Bank.

The provisions of this article shall not apply to the directors or personnel of banks or financial institutions.

Any person who, acting on his own behalf or on another’s, contravenes the provisions of this article, shall be punished by a fine of CFAF 500,000 to CFAF 5,000,000.

Second offenders shall be punished by imprisonment for a term of two months to two years, by a fine of CFAF 1,000,000 to CFAF 10,000,000, or both.

Art. 71. Subject to the provisions of Article 42 and the laws and regulations governing certain natural or juridical persons, no natural or juridical person other than a bank shall solicit or accept deposits of funds from the public for any period of time.

Any person who, acting on his own behalf or on another’s, contravenes the provisions of the preceding subparagraph, shall be punished by imprisonment for a term of one month to two years, a fine of CFAF 2,000,000 to CFAF 10,000,000, or both.

For second offenders, the maximum penalty shall be raised to five years’ imprisonment and a fine of CFAF 50,000,000.

The following shall not be regarded as having been received from the public:

Funds constituting the enterprise’s capital;

Funds received from the enterprise’s directors or from partners or

company members holding 10 per cent or more of the registered capital;

Funds received from banks or financial institutions in connection with credit operations;

Funds received from the enterprise’s personnel, provided they aggregate less than 10 per cent of the enterprise’s paid-in proprietary capital.

Funds originating from issues of cash vouchers shall in every case be regarded as deposits of funds received from the public.

Art. 72. The Attorney General of the Republic shall inform the Central Bank of any action at law instituted against any person pursuant to the provisions of this law.

Title VIII. Transitional Arrangements and Implementing Regulations

Art. 73. All banks and financial institutions at present registered on the list of banks or financial institutions shall be automatically authorized and registered on the lists provided for in Articles 7 and 12. They must comply with the provisions of this law within a year from the date of its entry into force.

Art. 74. The Central Bank shall be consulted before implementing regulations for this law are issued.

Art. 75. All legal provisions conflicting with this law, and particularly those of Law No. 65-252 of August 4, 1965, are hereby rescinded.

Art. 76. This law shall be enforced as a law of the State and published in the Journal officiel of the Republic of Ivory Coast.

{The signatory clause is omitted.}

Decree No. 66-167 1

Fixing the minimum amount of capital for banks and financial establishments as well as the terms for setting up reserve funds

[April 26,1966]

The President of the Republic,

Having regard to Law No. 65-252 of August 4, 1965 regulating credit and organizing the banking profession and related professions,

Having regard to Decree No. 66-45 of March 8, 1966 determining the powers of the Minister for Economic and Financial Affairs,

Having heard the Council of Ministers,

decrees:

Art. 1. Any registered bank operating in the territory of the Republic of Ivory Coast shall be required at any time to furnish proof of having a capital the amount of which, without ever being allowed to be less than CFAF 300 million, must be equal to or greater than:

8 per cent of the risks appearing in its balance sheet or outside its balance sheet as of the closing date of its most recent fiscal year, for a commercial and deposit bank;

12 per cent of the risks appearing in its balance sheet or outside its balance sheet as of the closing date of its most recent fiscal year, for an investment or development bank.

The same ratios must exist between risks and allocated capital of which, in accordance with Article 19 of Law No. 65-252 of August 4, 1965, 2 foreign banks authorized to carry on their business in the territory of Ivory Coast are required to furnish proof.

Art. 2. Every registered financial establishment must at all times furnish evidence of its having a capital the amount of which may not be less than 10 per cent of its risks recorded in the balance sheet and outside the balance sheet as of the date of its last fiscal year, but this capital may not be less than CFAF 60 million.

Art. 3. For purposes of implementing this Decree,

“capital” should be held to mean the own funds available to the bank or the financial establishment consisting of the total of the authorized capital, reserves, allocations, nonearmarked provisions and profits carried forward subject to deduction of losses; insofar as investment and development banks are concerned, the capital so determined shall be increased by loans granted by the State against a prior claim assignment;

“risks” should be held to mean all credits granted by the bank or the financial establishment irrespective of the length of time of such credits, whether or not they have been rediscounted or pawned, guarantees and endorsements excluding guarantees for public contracts, counterguarantees given to local or external banks, confirmed credit opened but not yet used; from the total so determined shall be deducted counterguarantees received from local or external banks, guarantees furnished by the State, and provisions for risks that have been earmarked.

Art. 4. The provisions of Article 1 hereinabove shall go into effect, on the basis of the balance sheet and accounting statement as of September 30, 1965, on a date which shall be fixed by an order of the Minister for Economic and Financial Affairs. However, in the case of commercial and deposit banks, the ratio provided for in Article 1 applied to their balance sheet as of September 30, 1965 may not exceed 4 per cent, provided that advances on blocked accounts of the external registered offices or parent firms, being added to the capital as defined in Article 3, establish the ratio prescribed in Article 1 permanently at 8 per cent.

The minimum ratio of 4 per cent so authorized as at September 30, 1965 shall be raised, according to a progressive scale subsequently determined by an order of the Minister for Economic and Financial Affairs, adopted pursuant to advice from the Central Bank of West African States, so as to reach on September 30, 1969 the rate of 8 per cent fixed in Article 1 of this Decree.

Art. 5. The reserve funds which banks and financial establishments are required to set up in pursuance of Article 21 of Law No. 65-252 of August 4, 1965 3 shall be augmented by taking 4 per cent from the combined charges and commission charges collected in the course of the year.

Art. 6. Special instructions shall set forth the terms for computing the ratios provided for in the articles hereinabove as well as the terms for providing advances in blocked accounts.

Art. 7. This Decree shall be published in the Journal officiel of the Republic of Ivory Coast.

{The signatory clause is omitted.}

Order No. 2976 1

Raising from 5 per cent to at least 6 per cent the share of own resources in the minimum capital of commercial banks and deposit banks as defined by Article 3 of Decree No. 66-167 of April 26,1966

[October 3,1967]

The Minister for Economic and Financial Affairs,

Having regard for Law No. 65-252 of August 4, 1965, regulating credit and organizing the banking profession and related professions;

Having regard to Decree No. 66-167 of April 26, 1966, fixing the minimum amount of capital for banks and financial establishments and the terms for setting up reserve funds, and especially to its Article 4;

Having regard to Decree No. 66-45 of March 8, 1966 determining the powers of the Minister for Economic and Financial Affairs,

orders:

Art. 1. According to the provisions of Article 1 of Decree No. 66-167 of April 26, 1966, commercial and deposit banks established in the territory of the Republic of Ivory Coast shall be required during the fiscal year 1967/68, and at all times, to furnish proof of having a capital the amount of which, without being allowed to be less than CFAF 300 million, must be equal to or greater than 8 per cent of the risks shown in their balance sheet or outside the balance sheet on September 30,1967.

Art. 2. However, the ratio provided for in Article 1, applied to the balance sheets of the commercial and deposit banks, made up to September 30, 1967, may not exceed 6 per cent, provided that advances on blocked accounts of the partners or external offices being added to the capital, as defined in Article 3 of Decree No. 66-167 of April 26, 1966, permanently establish at 8 per cent the ratio prescribed in Article 1.

Art. 3. This Order shall be published in the Journal officiel of the Republic of Ivory Coast.

{The signatory clause is omitted.}

Decree No. 66-168 1

Regulating the opening and closing of banks and financial establishments in the territory of the Republic of Ivory Coast and the opening and closing of their offices and counters

[April 26,1966]

The President of the Republic,

Having regard to Law No. 65-252 of August 4, 1965, regulating credit and organizing the banking and related professions;

Having regard to Decree No. 66-45 of March 8, 1966, determining the functions and powers of the Minister in charge of Economic and Financial Affairs;

The Council of Ministers having been heard,

decrees:

Art. 1. The banks and financial establishments defined in Articles 1 and 7 of Law No. 65-252 of August 4, 1965 2 and which wish to do business in the territory of the Republic must apply for authorization to the Minister for Economic and Financial Affairs. This application must be accompanied by the following documents:

  • (a) charter of the bank or financial establishment;
  • (b) list of members of the governing board and of the directors;
  • (c) list of the principal shareholders;
  • (d) nationality of the capital pledged;
  • (e) receipt for an application for registration on the Commercial Register.

Art. 2. The Minister for Economic and Financial Affairs is made responsible for arranging for examination of these applications, obtaining the opinion of the Commission for Control of Banks and Financial Establishments, the Central Bank of West African States, and the Professional Association of Banks.

Art. 3. Before making his decision, the Minister for Economic and Financial Affairs shall obtain the results of the inquiry set up by the Public Prosecutor, for which provision is made in Article 16, paragraph 9 of the above-mentioned law.3

Art. 4. In the event of a favorable decision the Minister for Economic and Financial Affairs shall give, by order, full instructions to the Central Bank of West African States, Abidjan Office, for assignment of a registration number on the list of banks or financial establishments, as such instructions are provided for in Article 11 and Article 15 of said law.4

Art. 5. Striking-off from the list of banks may be ordered by the Minister for Economic and Financial Affairs either at the request of the institution concerned, or on the opinion of the National Credit Council, or at the request of the Commission for the Control of Banks and Financial Establishments.

Art. 6. Banks and financial establishments authorized to do business in the territory of the Republic of Ivory Coast may not open, reopen, cede, or transfer a permanent, periodic, or seasonal office or counter without prior authorization from the Minister for Economic and Financial Affairs.

The Minister for Economic and Financial Affairs is made responsible for arranging the examination of these applications, obtaining the opinion of the Commission for the Control of Banks and Financial Establishments, the Central Bank of West African States, and the Professional Association of Banks.

Art. 7. The closing of any office or counter formerly opened in due form must, before any commencement of execution, be brought to the notice of the Commission for the Control of Banks and Financial Establishments, which shall inform the Minister for Economic and Financial Affairs of the matter. Without authorization from the minister, the operations of an office or counter may not be discontinued until three months after announcement of the intention to close it.

Art. 8. A bank or financial establishment shall be regarded as having an office or counter in a given location if, in that location, it carries out operations with its customers in premises accessible to the public, by means of staff whom it remunerates.

An office or counter is regarded as permanent if its access is open to the public more than twice a week, however long the daily opening may be.

An office or counter is regarded as periodic if its access is open not more than two days a week, however long the daily opening may be.

An office or counter is regarded as seasonal if its access is open to the public for a single annual period of less than four consecutive months.

The prior authorization required under Article 1 above is also necessary for changing the classification of an office or counter.

Art. 9. The assignment, transfer, or merger of banks and financial establishments or their offices, and also any transfer of a substantial portion of their assets, is also subject to prior authorization from the Minister for Economic and Financial Affairs.

Art. 10. This decree shall be published in the Journal officiel of the Republic of Ivory Coast.

{The signatory clause is omitted.}

Decree No. 66-169 1

Organizing the legal prosecution of infractions of the banking regulations

[April 26,1966]

The President of the Republic,

Having regard to Law No. 65-252 of August 4, 1965, regulating credit and organizing the banking and related professions, particularly its Article 33;

Having regard to Decree No. 66-45 of March 8, 1966, determining the functions and powers of the Minister in charge of Economic and Financial Affairs;

The Council of Ministers having been heard,

decrees:

Art. 1. Legal action against the infractions referred to in Articles 29 to 32 of Law No. 65-252 of August 4, 1965 2 may be brought only on a complaint by the Minister for Economic and Financial Affairs or one of his representatives empowered for this purpose.

Art. 2. If infractions referred to in the law mentioned in the foregoing article are prejudicial to credit or the currency, the Minister for Economic and Financial Affairs may institute a civil action on behalf of the State in conjunction with the penal action brought against the persons committing those infractions.

Art. 3. The Minister for Economic and Financial Affairs and the Minister of Justice are responsible for implementation of this decree, which shall be published in the Journal officiel of the Republic of Ivory Coast.

{The signatory clause is omitted.}

Law No. 62-54 1

Establishing a National Investment Fund 2

[February 12, 1962]

The National Assembly has adopted,

The President of the Republic promulgates the following law:

Art. 1. A National Investment Fund, financed by an additional levy on direct taxes in the manner described below, is hereby established.

Art. 2. This levy is payable by those subject to:

taxes on industrial and commercial profits, profits from farming, and profits from noncommercial occupations, at the rate of 10 per cent of realized profits;

the real estate tax on buildings, at the rate of 10 per cent of net income.

The exemptions provided for in Law No. 59-134 of September 3, 1959 do not apply to the aforementioned levy.

Levies, which shall be rounded down to the next lower thousand-franc figure, shall not be collected if they amount to 10,000 francs or less.

Buildings or parts of buildings used exclusively as residences and inhabited mainly by their owners shall not be subject to the additional real estate tax levy.

Art. 3. In exchange for their payments, payers shall receive shares in the Fund’s capital in an amount equal to their payments.

These shares may be redeemed when their holders submit evidence of having invested an amount equal to at least double the value of their shares in projects recognized as useful to economic, cultural, or social development.

Art. 4. The National Investment Fund shall possess legal personality and financial autonomy. It shall be managed by a Board of Directors and a Management Committee.

Of the amounts paid into the Fund:

a maximum of 10 per cent shall be used for studies and research required for the establishment of economic, cultural, and social development programs;

the remaining 90 per cent shall be used for investment operations and share redemption.

Art. 5. Decrees adopted by the Council of Ministers shall set forth the procedures by which this law shall be implemented, specifically with respect to:

the membership of the Board of Directors and the Management Committee;

the timetable of the share redemption procedure;

the nature and type of investments required for share redemption, the procedure for approving these investments, and, pursuant to Art. 3 above, the ratio between the amount redeemed and the amount of the approved investments.

Art. 6. This law shall be published in the Journal officiel of the Republic of Ivory Coast and executed as a law of the State.

{The signatory clause is omitted.}

Decree No. 62-113

Setting forth the membership and functions of the administrative and management bodies of the National Investment Fund

[April 18,1962]

The President of the Republic,

On the basis of the report of the Minister of Finance, Economic Affairs, and Planning;

In light of Law No. 62-54 of February 12, 1962 creating a National Investment Fund;

Having heard the Council of Ministers,

decrees:

Art. 1. The Board of Directors of the National Investment Fund shall consist of:

the Minister of Finance, Economic Affairs, and Planning (chairman);

a representative of the Minister of the Interior;

a representative of the Minister of Defense;

a representative of the Minister of Public Works, Transportation, and Post and Telecommunications;

a representative of the Minister of Agriculture and Cooperation;

a representative of the Minister of Livestock Production;

a representative of the Minister of Labor and Social Affairs;

a representative of the Minister of Construction and Town Planning;

five representatives of the contributors to the Fund, selected by their trade associations and approved by the Minister of Finance, Economic Affairs, and Planning;

three prominent persons selected by the Minister of Finance, Economic Affairs, and Planning on the basis of their positions or competence in the financial, economic, cultural, or social field.

The Board of Directors shall be assisted by a Secretary General of the National Investment Fund, appointed by the Management Committee, who attends meetings in an advisory capacity and examines investment proposals.

Art. 2. The Board of Directors shall define the general policies of the Fund and offer suggestions concerning:

  • the shares in the Fund’s capital referred to in Article 2 of the Law of February 12, 1962;
  • the timetable and procedure of share redemption;
  • the nature and type of investments required for share redemption;
  • the procedure for approving these investments;
  • the ratio, pursuant to Article 3 of the aforementioned law, between the amount redeemed and the amount of approved investments.

Art. 3. The Management Committee of the National Investment Fund shall consist of:

  • the Minister of Finance, Economic Affairs, and Planning (chairman);
  • six members of the Board of Directors, three of whom shall be representatives of the Ministers referred to in Article 1 above;
  • two representatives of contributors to the Fund;
  • one prominent person.

The Secretary General shall also attend meetings of the Management Committee in an advisory capacity.

Art. 4. The Minister of Finance, Economic Affairs, and Planning shall be responsible for execution of this decree, which shall be published in the Journal officiel.

{The signatory clause is omitted.}

Decree No. 62-134

Setting forth rules for implementing Law No. 62-54 of February 12, 1962 creating a National Investment Fund

[April 28,1962]

The President of the Republic,

On the basis of the report of the Minister of Finance, Economic Affairs, and Planning;

In light of Law No. 62-54 of February 12, 1962 creating a National Investment Fund, and of Decree No. 62-113 of April 18, 1962 setting forth the membership and functions of the Board of Directors and Management Committee of the Fund;

In light of the minutes of the meeting of the Board of Directors of April 24,1961;

Having heard the Council of Ministers,

decrees:

Art. 1. The additional levies provided for in Article 2 of the law referred to above, No. 62-54 of February 12, 1962, shall be calculated as follows:

With respect to the profits of those subject to taxes on industrial and commercial profits, profits from farming, and profits from noncommercial occupations: on the taxable profits on which calculation of these taxes is based, notwithstanding the exemptions granted by current laws, especially Law No. 59-134 of September 3, 1959, and before any deductions, especially those provided for in Article 84 of the General Tax Code;

With respect to those subject to the real estate tax on buildings: on net income, notwithstanding the exemptions granted by Law No. 59-134 of September 3, 1959 or by the General Tax Code, especially in Article 4.

Art. 2. Investments in the normal development of an existing enterprise, especially those entailing the deduction from profits provided for in Article 84 of the General Tax Code, shall not satisfy the requirements for the redemption referred to in Article 3, second paragraph, of the aforementioned Law No. 62-54 of February 12, 1962.

Art. 3. The shares referred to in that Article 3, first paragraph, which shall be given to levy-payers in exchange for their payments and in an amount equal to those payments, shall be in the form of registered stock. They shall not be assignable or transferable, except as may be stipulated in the future by order of the Minister of Finance, Economic Affairs, and Planning after hearing the opinion of the Board of Directors of the National Investment Fund.

There shall be Series A shares and Series B shares. Series A certificates shall be issued in exchange for payments by those subject to taxes on industrial and commercial profits, profits from farming, and profits from noncommercial occupations. Series B certificates shall be issued in exchange for payments made by those subject to the real estate tax on buildings.

Series A certificates may be used for all investment categories referred to in Article 4 below; Series B certificates may be used only for Categories II and III investments. 1

Art. 4. Investments satisfying the requirements for redemption of the shares in the capital of the Fund shall be classified in three categories:

Category I: Investments in commercial, industrial, or agricultural enterprises belonging to shareholders; subscriptions to increases in the capital of those enterprises; participation in the creation of new enterprises of the same type;

Category II: Investments in housing construction;

Category III: Subscription of bonds in approved national investment companies.

Categories I and II investments must be approved in advance by the Management Committee. Category III investments may be made on the basis of a simple declaration, observing the conditions set forth in Articles 5 and 6 below.

Art. 5. Investment proposals for Categories I and II investments must be submitted within 15 months.

Subscription of bonds issued by national investment companies (Category III) must take place within 12 months.

Stock certificates not used within two years shall automatically be used to subscribe long-term government loans on terms to be set forth by decree, taking account of the provisions of the laws authorizing such loans.

Art. 6. The ratio between the amount invested and the amount of shares redeemed shall be set as follows:

Category I. Three times the face value of the certificate, with individual deviations of up to one point;

Category II. Four times the face value of the certificate, with individual deviations of up to one point;

Category III. Twice the face value of the certificate.

The deviations referred to above may be granted only by the Board of Directors.

Categories I and II investment projects may not be in amounts of less than CFAF 15,000,000.

Art. 7. In connection with Categories I and II investments, shareholders may form a group, on the terms set forth in Article 4 above, to submit a joint project proposal. They must support their application with documents:

identifying the certificates they hold and the value of the individual investments they are committed to making;

giving a complete, detailed subscription 2 of the project;

giving a precise estimate of planned expenditures and, if appropriate, showing the relevant plans;

indicating the time required for completion, which shall not exceed two years except where specifically authorized;

indicating the number and category of new jobs to be created;

containing a provisional balance sheet and a provisional trading account for the first three years of the operation.

A decision on approval must be handed down within three months; thereafter, if notification of approval has not been given, approval shall be assumed.

Art. 8. Share redemption for approved projects or for subscription of bonds issued by national investment companies, in accordance with the ratios specified in Article 6 above, shall be effected upon presentation to the Secretary General of the Fund of documents attesting to payment of the expenditures.

Art. 9. The Minister of Finance, Economic Affairs, and Planning shall be responsible for execution of this decree, which shall be published in the Journal officiel.

{The signatory clause is omitted.}

Law No. 68-346 1

Creating a Guarantee Fund for Credits to Ivorian Enterprises 2

[July 29,1968]

The National Assembly has adopted,

The President of the Republic promulgates the law the wording of which follows:

Art. 1. There is created a Guarantee Fund for Credits to Ivorian Enterprises in the form of a public establishment endowed with the status of a juridical person and with financial autonomy.

Art. 2. The purpose of the Fund is to promote Ivorian enterprise by guaranteeing short-, medium-, and long-term bank credits needed for development thereof.

Art. 3. The Fund shall derive from State budget appropriations such subsidies and grants as may be accorded to it, income from its investments and proceeds from the collection of its claims.

Art. 4. Operations of the Fund shall be guaranteed by the State.

Art. 5. The organization and the terms of operation and intervention of the Fund shall be the subject of a decree adopted by the Council of Ministers.

Art. 6. This law shall be executed as a law of the State and shall be published in the Journal officiel of the Republic of Ivory Coast.

{The signatory clause is omitted.}

Decree No. 68-508 1

Providing for the organization of the Guarantee Fund for Credits to Ivorian Enterprises

[October 26, 1968]

The President of the Republic,

Pursuant to the report of the Minister of Economic and Financial Affairs,

Having regard to Law No. 68-346 of July 29, 1968, creating the Guarantee Fund for Credits to Ivorian Enterprises, and especially to Article 5 thereof,

Having heard the Council of Ministers,

decrees:

Art. 1. The purpose of this Decree is to define the organization, the terms of intervention, and the operating conditions of the Guarantee Fund for Credits to Ivorian Enterprises, a public establishment endowed with the status of a juridical person and with financial autonomy, created by Law No. 68-346 of July 29,1968.

Art. 2. The Fund is designed to guarantee credits granted by the banking establishments to Ivorian nationals or to Ivorian companies the capital of which is held to the extent of more than 50 per cent by Ivorian nationals. It also intervenes by giving a guarantee for signed commitments made by banking establishments in favor of Ivorian enterprises.

Borrowers must show a sound financial position. When applying for medium-term credits, they must finance out of their own resources a portion of the planned investments, providing that such self-financed portion may not in any event be less than 10 per cent.

Art. 3. The resources of the Fund shall be deposited with the Autonomous Amortization Fund; such deposits shall bear interest.

Art. 4. Interventions by the Fund shall be decided by a Management Committee composed of:

a representative of the Minister of Economic and Financial Affairs,

a representative of the Minister of Planning,

a representative of the National Assembly,

a representative of the Economic and Social Council,

the Director of Public Accounting and of the Treasury, the Director of the Central Bank of West African States,

the Director of the Autonomous Amortization Fund,

the Director of the National Office for the Promotion of Ivorian Enterprise,

a person designated by the Minister of Economic and Financial Affairs by reason of his competence in economic and financial matters.

The Chairman of the Management Committee shall be elected by the latter pursuant to a proposal by the Minister of Economic and Financial Affairs.

The Management Committee shall meet upon being convened by its Chairman as often as required by the operations of the Fund.

The Management Committee shall constitute a quorum when two thirds of its members are present. If a member is absent or unable to attend to his duties, he may arrange to be represented by a person from the agency or organization that designated him.

Only the Management Committee shall be qualified to grant the Fund guarantee for operations that are submitted to it.

The Management Committee shall, moreover, decide all matters concerning the Fund, especially:

the annual estimates of receipts and expenditures the accounts at the end of the fiscal year.

Art. 5. The administrative and accounting part of the Fund’s activity shall be entrusted to a Secretary General designated by the Minister of Economic and Financial Affairs.

Art. 6. The Secretary General shall be responsible for:

preparing the draft operating budget and for submitting it to the Management Committee,

presenting to the Management Committee, within at most five months following the end of each fiscal year ended on September 30, the annual balance sheet and for preparing a report on the activities of the Fund in the course of such fiscal year,

examining the records presented to him by lending bankers and for submitting them to the Management Committee together with a memorandum of presentation,

ensuring and supervising the due execution of the decisions of the Management Committee,

following at the accounting level the development of risks assumed by the Fund,

representing the Fund vis-à-vis third parties and, especially, banks.

Art. 7. Control of the Fund’s operations shall be ensured by a State Comptroller designated by the Minister of Economic and Financial Affairs.

The State Comptroller may demand to be given discovery of any documents needed to accomplish his mission.

The State Comptroller shall report to the Minister of Economic and Financial Affairs on the execution of his assignment within not more than five months following the end of each fiscal year.

The Fund’s accounts shall become definitive only after having been approved by the Minister of Economic and Financial Affairs.

Art. 8. The combined guarantees granted by the Fund may not exceed 5 times the amount of its available resources. In order to determine this ceiling, the sum total of the guarantees given minus amortization payments made shall be taken into consideration.

Art. 9. The Fund’s guarantee, whether given as a direct guarantee or as a counterguarantee for commitments assumed by signature, may not exceed 80 per cent of the amount of loans granted and related interest accruals. During the entire duration of the credits, this guaranteed part shall proportionately remain the same and shall be the subject of amortization payments identical with those of the part not covered by the guarantee.

Art. 10. Projects submitted to the Management Committee for examination must be supported by technical and financial studies made, if necessary, by specialized agencies, such as the National Office for the Promotion of Ivorian Enterprise. These specialized agencies may also carry out any missions of control and supervision that might prove necessary after the credits have been granted.

Implementation of credits shall be subject to the borrowers expressly agreeing to this control.

Art. 11. The lending bankers must make sure that credits are implemented according to the conditions laid down by the Management Committee.

Art. 12. Borrowers must formally undertake to have only one bank account in one local commercial bank and to cause all operations relating to their activities to be channeled through that account.

Art. 13. The Fund’s guarantee may be used only after recourse to the usual legal channels and realization of other guarantees that might be applicable to the credits. The lending banker may, however, succeed in having the Fund’s guarantee used six months after verification of default of the debtor.

Art. 14. Following realization on the guarantee, the Fund shall, to the extent due, be subrogated to all the rights of the lending banker.

Art. 15. Should the Fund be dissolved, its liquid resources shall be transferred back to the Treasury.

Art. 16. The Minister of Economic and Financial Affairs shall be charged with the implementation of this Decree, which shall be published in the Journal officiel of the Republic of Ivory Coast.

{The signatory clause is omitted.},

15 AE PL 1 1

Order establishing the public company known as the Credit Bank of Ivory Coast 2

The Minister of French Overseas Departments and Territories,

Having regard to the law of April 30, 1946 on the establishment, financing, and implementation of the services and development plans in the territories under the jurisdiction of the Minister of French Overseas Departments and Territories, and particularly to Article 2 thereof;

Having regard to Decree No. 46-2356 of October 24, 1946, determining the terms under which the French Central Overseas Fund 3 shall carry out the operations authorized by the law of April 30, 1946;

Having regard to the decree of December 20, 1951, organizing the supervision of public and semipublic enterprises set up pursuant to the law of April 30,1946;

Having regard to the deliberation on November 22, 1954, of the Territorial Assembly of Ivory Coast;

Having regard to the resolution adopted on January 4, 1955 by the management committee of fides; 4

Having regard to the resolution adopted on January 6, 1955 by the supervisory council of the French Central Overseas Fund,

orders:

Art. 1. A public company which shall be a multipurpose credit institution known as the Credit Bank of Ivory Coast and governed by the following charter is hereby established:

Charter of the Credit Bank of Ivory Coast 5

Art. 1. A company to be governed by this charter is hereby established under the name of the Credit Bank of Ivory Coast. Said company shall be a financially autonomous juridical person with the status of a business and shall be listed in the Ivory Coast Commercial Register.

Art. 2. The Credit Bank of Ivory Coast is authorized to provide technical or financial assistance for any project promoting the economic and social development of Ivory Coast.

In particular, it is authorized to:

  • (a) Carry out on its own authority any financially sound operation and which contributes to:
    • the development of trade, industry and fisheries;
    • the improvement of housing conditions and family living standards;
    • providing the supplies and equipment used by members of the liberal professions.

To this end, the Credit Bank may:

  • mobilize domestic resources either in the form of deposits or by borrowing;
  • borrow abroad;
  • lend, discount, and extend guarantees;
  • take up equity capital in private companies, regional development corporations, supply and equipment companies or any other entity;
  • engage in construction activities for rental or lease-purchase purposes.
  • (b) Provide the assistance of its technical organization to the Republic of Ivory Coast or its agencies, under terms mutually agreed upon by the parties, for purposes of examining any problem or proposal having an economic or financial impact as well as to study, conduct, and provide accounting services for operations which, regardless of whether they fall into the categories referred to in paragraph (a) above, are to be carried out by the Credit Bank of Ivory Coast using resources other than its own and for which it is not at risk.

The agreements under which the Credit Bank of Ivory Coast is entrusted with management of such resources may specify, as appropriate, special authorization conditions applicable to the operations financed therewith. Said agreements may, inter alia, provide for a management committee whose membership differs from that of the Board of Directors. Such agreements shall have the prior approval of the Board of Directors.

Art. 3. The ceilings applicable to amounts lent to individual borrowers, and to the overall volume and term of the operations of the Credit Bank of Ivory Coast, as well as the rules relating to the nature and origin of the deposits which the Credit Bank is authorized to receive, shall be specified in the internal by-laws of the Credit Bank, approved by a three-fourths majority of the Board of Directors.

Art. 4. The Credit Bank of Ivory Coast shall conduct its business in accordance with the laws and practices governing private enterprises. With respect to advertising, it shall observe the same formalities as joint-stock companies.

Art. 5. The head office of the Credit Bank of Ivory Coast shall be located in Abidjan at a site to be selected by the Board of Directors. It may be transferred to any other location in Ivory Coast by simple decision of the Board of Directors.

Art. 6. Corporate capital shall be fixed at CFAF 4.8 billion, subscribed by:

the Republic of Ivory Coast: CFAF 2.8 billion;

the Caisse Centrale de Coopération Economique: CFAF 1.6 billion;

the Central Bank of West African States: CFAF 400 million.

Said capital may be increased by a three fourths majority decision of the Board of Directors.

Art. 7. The Credit Bank of Ivory Coast shall be administered by a Board of Directors made up of 12 members. Shareholders shall be represented on the Board in proportion to their participation in the capital and may organize themselves in order to exercise this right. Each shareholder or group of shareholders shall thus have one seat on the Board for every 1/12 of the capital it holds. Seats which cannot be allocated in accordance with this procedure shall go to those shareholders or groups thereof with the largest unrepresented balances.

Directors’ terms of office shall end upon their resignation or death, and upon notification sent to the company by the appointing authority or agency.

The office of the Director shall be unremunerated. However, the Chairman of the Board may receive an administrative allowance.

Art. 8. The Chairman of the Board of Directors shall be appointed by the Board from among its members by a three-fourths majority. If the voting is tied, the Chairman shall have the casting vote. In his absence, he shall be replaced by the Vice-Chairman, the representative of the Caisse Centrale de Coopération Economique.

The functions of Chairman of the Credit Bank of Ivory Coast shall be inconsistent with the holding of any political office.

Art. 9. Board decisions shall be valid if at least six of its members are in attendance or are represented. Any Director may be represented by another Director for a particular meeting. A Director may repesent no more than one of his colleagues. Board decisions shall be reached by simple majority vote except as otherwise provided by this Charter or by the internal by-laws.

The Board shall meet when convened by its Chairman, who may delegate his authority to the General Manager. It shall also meet at the request of any five of its members.

Art. 10. The Board of Directors is vested with the broadest possible powers with respect to taking action on behalf of the company and authorizing any activities relating to its purpose.

In particular, its powers include those listed below for reference purposes; the list is nonrestrictive except insofar as this Charter expressly delimits their terms or extent. The Board shall:

appoint the Chairman and General Manager, conclude all purchases, sales and rentals of real property,

contract all loans with or without mortgage or lien on the property of the Credit Bank of Ivory Coast, approve all arbitration agreements, acceptances of judgments, waivers of legal action, cancellations of distraint order registrations, or objection procedures before or after payment; it shall initiate and pursue any and all legal actions or proceedings in any jurisdiction, either as defendant or plaintiff; it shall carry out all purchases, conveyances and asset transfers; and it shall decide, upon a proposal by the General Manager, which loans to extend and may not delegate this power except under the conditions and in the amounts set forth in the internal by-laws.

Art. 11. Management of the company shall be provided by and under the responsibility of the General Manager, who shall be appointed by the Board of Directors by a three-fourths majority.

The post of General Manager shall be inconsistent with the holding of any political office. The General Manager may not engage in any business or have any interest in a commercial enterprise. He shall represent the company vis-à-vis third parties. He shall appoint and dismiss staff. He may delegate his power for a specific purpose and toward a given objective.

Art. 12. All acts and operations of the company decided upon by the Board of Directors, as well as withdrawals of funds or securities, payment orders against bankers, debtors, or depositors and subscription endorsements, acceptance or receipt of commercial paper, must, in order for the company to be committed, be signed by the General Manager or his authorized delegate.

Art. 13. The exclusionary clauses and clauses relating to conflicts of interest set forth by the laws and decrees in force with respect to exercising the functions of Chairman, Director, General Manager, or Auditor in joint-stock companies shall be applicable to the individuals holding the corresponding positions at the Credit Bank of Ivory Coast.

Art. 14. No agreement between the Credit Bank of Ivory Coast and its General Manager, whether concluded directly or indirectly, shall be valid if it has not previously been authorized by the Board of Directors.

The same shall hold true for agreements between the Credit Bank and any enterprise of which the General Manager of the Credit Bank or any of the Directors is an owner, an associate by name or by the holding of shares, director, or general manager.

Art. 15. The source of the resources to be used in the company’s own operations shall be:

(a) its capital;

(b) its private or public deposits;

(c) grants and advances, whether of domestic or foreign origin, extended in order to promote the development of credit in Ivory Coast;

(d) credits extended by the Central Bank of West African States.

Art. 16. The accounting operations of the Credit Bank of Ivory Coast shall be carried out and written up in accordance with customary practice in industrial and commercial enterprises.

The fiscal year shall begin on October 1 and end on September 30 of each year.

At the end of each fiscal year, the General Manager shall draw up an annual report and prepare a balance sheet and profit and loss account for approval by the Board. The latter shall then determine the amount of net profits by subtracting the following from the proceeds:

  • (a) all overhead and welfare expenditure, including inter alia interest and amortization on all loans, remuneration of management and staff, and all administrative and control costs;
  • (b) all amounts earmarked for various amortization payments and provisions for possible amortization or commercial risks which the Board deems it appropriate to establish for the property and securities of the Credit Bank of Ivory Coast.

Net profit shall be earmarked for the accumulation of reserves.

Art. 17. The Credit Bank of Ivory Coast shall have two auditors appointed by the Board of Directors by a three-fourths majority upon a proposal made severally or by the two largest shareholders together.

The auditors shall perform their duties as prescribed by law.

Their report shall be addressed to the Board of Directors.

Art. 18. The accounts of the Credit Bank shall not be deemed final until they have been approved by a three-fourths majority of the Board of Directors.

Art. 19. In the event of liquidation of the Credit Bank, assets shall be realized and liabilities paid off in accordance with the law applicable to commercial companies.

Art. 20. This Charter may be amended only in the manner in which it was approved.

Art. 2. Officials at present in service who may be made available to the company shall be placed on secondment as prescribed by the regulations in effect. Their emoluments shall be fixed by the Board of Directors under the terms provided for by the regulations in effect.

Art. 3. This order shall be published in the Journal officiel of the French Republic and the Journal officiel of the A.O.F., and included in the Bulletin officiel of the Ministry of French Overseas Departments and Territories.

{The signatory clause is omitted.}

Decree No. 75-445 1

Establishing a corporation called National Bank for Savings and Credit 2 and laying down rules for the management and control of said corporation

[June 23,1975]

The President of the Republic,

Pursuant to the report of the Minister of Economy and Finance,

Having regard to Law No. 65-252 of August 4, 1965, regulating credit and organizing the banking profession and related professions,

Having regard to Law No. 70-633 of November 5, 1970, laying down the rules governing companies in which the Government holds equity,

Having regard to Law No. 70-486 of August 3, 1970, establishing the list of high-level government positions,

Having regard to Decree No. 66-48 of March 8, 1966, as amended by Decree No. 66-339 of September 5, 1966, determining the powers of the Minister in charge of Economic and Financial Affairs and organizing the Ministry,

Having regard to Decree No. 75-148 of March 11, 1975, organizing the supervision of companies in which the Government holds equity,

Having regard to Decree No. 75-149 of March 11, 1975, laying down the rules for management and control of companies in which the Government holds equity,

Having heard the Council of Ministers,

decrees:

Art. 1. There is hereby created under the name of National Bank for Savings and Credit (bnec), a public corporation governed by the laws and regulations pertaining to companies in which the Government holds equity, the texts regulating the banking profession and related professions, the texts governing joint-stock companies in Ivory Coast, and the by-laws annexed hereto.

Art. 2. The bnec shall be under the supervision of an Interminis-the Minister of Planning.

terial Committee made up of the Minister of Economy and Finance and

Art. 3. The purpose of the bnec shall be:

  • 1. To finance site development for the construction of low-cost housing;
  • 2. To seek and set up the financing needed by governmental housing enterprises for carrying out low-cost housing projects that come within the objectives of the Plan and whose technical features meet the norms laid down in joint orders of the Minister of Economy and Finance and the Minister of Construction and Urban Development;
  • 3. To collect and receive the savings deposits of natural or juridical persons with a view to facilitating access to real property, and to grant short-, medium-, and long-term loans for the construction, purchase, completion or remodeling of low-cost and medium-cost housing, and, more generally, to carry out all financial, banking, or commercial operations, concerning personal property or real estate, that directly or indirectly relate to the above purpose.

Art. 4. The capital shall be fixed at CFAF 1,000,000,000. The capital may be increased.

Art. 5. To achieve its purpose the bnec may:

  • (a) Receive deposits from savers;
  • (b) Issue on any financial market, or contract, by negotiation, any loans after authorization by the Minister of Economy and Finance and the Select Committee referred to in Article 9.
  • (c) Receive tax revenue allocated.

Art. 6. Tax revenue allocated may be used only for site development, improvement, and consolidation of loans contracted by housing enterprises for the financing of low-cost housing.

Art. 7. The repayment of loans contracted by the bnec shall be guaranteed by the public treasury.

Furthermore, the bnec is empowered to pay interest on deposits entrusted to it at a rate slightly higher than that applied by commercial banks.

Art. 8. The bnec shall be administered by a Board made up of at least 10 (ten) but not more than 12 (twelve) members.

It must include:

one representative of the National Assembly;

one representative of the Economic and Social Council;

two representatives of the Minister of Economy and Finance;

one representative of the Minister of Construction and Urban Development;

one representative of the Minister of Planning;

one representative of the Minister of Labor and Social Affairs;

one representative of the Agricultural Price Stabilization Fund;

one representative of the Central Bank of West African States;

one representative of the National Savings Bank.

The Directors shall be appointed by joint order of the Minister of Economy and Finance and the Minister of Planning. Upon the proposal of the Board, any person whose presence is deemed useful by reason of his qualifications may be appointed a Director.

Art. 9. A Select Committee shall be established, made up of the following Directors:

one representative of the Minister of Economy and Finance,

the representative of the Minister of Planning.

The task of the Committee is set out in Section IV of Decree No. 75-149 of March 11, 1975 laying down the rules for management and control of companies in which the Government holds equity, and in Article 13 of the by-laws.3

Art. 10. The bnec shall be managed by a General Manager, appointed by decree on the basis of a report of the supervising Ministries.

Art. 11. In addition to the control exercised by the Select Committee, the bnec shall be subject to the control of two auditors, chosen from the list of experts accredited by the Appellate Court and by the Equity Holdings Department of the Ministry of Economy and Finance.

Art. 12. The by-laws attached to this Decree are hereby approved.

Art. 13. The Minister of Economy and Finance and the Minister of Planning shall be responsible, each insofar as he is concerned, for the implementation of this Decree, which shall be published in the Journal officiel of the Republic of Ivory Coast.

{The signatory clause is omitted.}

Law No. 68-08 1

Establishing the National Bank for Agricultural Development 2

[January 6,1968]

Art. 1. With a view to promoting the agricultural development of Ivory Coast, a banking establishment of national scope, known as the National Bank for Agricultural Development and governed by the body of common laws applicable to joint-stock companies and the by-laws below, is hereby established.

Art. 2. The procedures to implement this law and the attached by-laws shall be established by decree.

Art. 3. Government supervision of the National Bank for Agricultural Development shall be exercised in conformity with the laws in force.

Art. 4. Any legislative or regulatory provisions inconsistent with the provisions of this law are hereby revoked.

By-Laws of the National Bank for Agricultural Development

Art. 1. The National Bank for Agricultural Development, a banking establishment serving the national interest, shall be governed by the body of common laws applicable to joint-stock companies, except as otherwise specified in these by-laws.

It shall also be subject to the provisions of the law regulating credit and organizing the banking profession and related professions.

head office

Art. 2. The head office of the National Bank for Agricultural Development shall be in Abidjan. It may be transferred to any other location by simple decision of the Board of Directors. The National Bank for Agricultural Development shall be authorized to open branches in accordance with the relevant provisions laid down by the banking regulations.

purpose

Art. 3. Under the supervision of the competent administrative authority, the National Bank for Agricultural Development shall be empowered to lend its technical or financial support to any project promoting rural development in Ivory Coast, in particular, in the areas of agricultural, livestock or forest production, fisheries, or rural handicrafts.

To this end it may intervene either on its own behalf or on behalf of the Government or government agencies.

(a) Operations on its own behalf

It shall have the authority to carry out, on its own responsibility, any operations offering sufficient guarantees of financial soundness and, in particular:

to mobilize local resources, either in the form of demand or time deposits or by the issuance of short-, medium- or long-term loans;

to rediscount its credits and contract any loans required to fulfill its mission;

to lend at short, medium or long term, to discount and to provide guarantees;

to carry out, in general, any financial operations or operations with personal or real property which relate directly or indirectly to the social purpose referred to above.

(b) Operations carried out on behalf of the Government or government agencies

In particular, the Bank shall have the authority to lend its technical capability to the examination of any agricultural problem having financial implications, as well as to the study, execution and accounting of operations to be carried out using resources which do not belong to the Bank and which it does not use at its own risk. Specifically, it may receive on deposit and use earmarked funds of public origin under the terms and conditions laid down in agreements to be reached with the agencies concerned.

duration

Art. 4. Barring extensions or early dissolution, the duration of the National Bank for Agricultural Development shall be ninety-nine years from the date of its establishment.

capital

Art. 5. The initial capital shall be CFAF 700,000,000 subscribed by the Republic of Ivory Coast, by juridical persons under Ivorian public or private law, and, if appropriate, by non-Ivorian public or private agencies able to make a worthwhile contribution to the rural development of Ivory Coast.

Apportionment of the capital will be determined by decree; the same procedure will be used to approve capital increases, whether they come about through subscriptions from the original associates or from new participants.

resources

Art. 6. The resources intended for use in the corporation’s own operations shall come from:

its capital;

annual appropriations to it made by legislation or regulation;

reserves and funds that it is required to set aside or that are called for by the Board of Directors;

grants, bequests, or gifts of any kind;

subsidies which may be granted to it by public authorities and income from funds managed by it;

the net proceeds from any liquidation of agricultural organizations decided on by the competent authorities;

loans it is authorized to float and domestic or international advances which may be granted to it;

proceeds from discounting or pledging its portfolio and securities;

funds entrusted to it on deposit;

proceeds from all of its operations.

Under terms and conditions to be laid down by decree, the grants or subsidies made to the corporation may be earmarked in whole or in part to the financing of short-, medium- and long-term credit operations, be they of individuals or of groups.

intervention arrangements

Art. 7. The rules applicable to the operations of the National Bank for Agricultural Development shall be contained in the rules of procedure, which must be approved by a three-fourths majority of the Board of Directors.

administration

Art. 8. The National Bank for Agricultural Development shall be administered by a twelve-member Board of Directors whose composition shall be determined by decree. Each subscriber shall have at least one seat on the Board.

The Directors’ term of office shall be three years. Their appointment shall be renewable.

The duties of Directors shall end upon expiry of their term, upon resignation, at death, or following notification to the corporation by the authority or agency which appointed them.

The office of Directors shall be unremunerated; only the Chairman may receive compensation for his work.

However, Directors meeting in regular session may claim a lump-sum allowance determined by the Board of Directors, as well as the reimbursement of their round-trip transportation costs.

chairman of the board of directors

Art. 9. Upon a proposal from the supervisory ministry, the Board of Directors shall elect a Chairman from among its members by a three-fourths majority of the appointed Directors.

meetings of the board of directors

Art. 10. The Board of Directors shall meet at least four times a year, when called by its Chairman (who may delegate his authority in this respect) at least one week prior to the scheduled date of the meeting. Two thirds of its members must be present or represented for a quorum to exist, and one proxy only may be conferred on each Director.

Decisions shall be taken by simple majority, except as otherwise provided by these by-laws or by the rules of procedure.

In the event of a tie, the Chairman shall cast the deciding vote.

powers of the board of directors

Art. 11. The Board of Directors shall have the broadest powers to act on behalf of the corporation and to authorize all acts relating to it.

Among its powers, which are listed by way of indication and are not limitative except to the extent that these by-laws expressly restrict the condition or scope of their exercise, shall be the following.

The Board shall:

appoint the Chairman of the Board of Directors and the General Manager under the terms and conditions set forth in Articles 10 and 13 of the by-laws;

draw up the rules of procedure of the corporation;

establish, install or close branches;

conclude all purchases, sales and rentals of real estate and sign and authorize all agreements or contracts;

contract all loans, with or without mortgages or pledges, on the assets of the corporation. Borrowing, however, which requires government approval or guarantee shall be subject to the regulations pertaining to the supervision of government finance;

authorize all arrangements, consents, waivers, removals of encumbrances, distraints or attachments before or after payment;

institute or engage in legal actions or proceedings in all courts, either as plaintiff or as defendant;

effect all acquisitions, assignments and transfers involving value;

on a proposal from the General Manager, it shall decide which operations are to be carried out under Article 3 of these by-laws and, in particular, on the allocation of loans.

To this end, it may delegate a portion of its powers both to a select committee known as the “Loan Committee” and to the General Manager, subject to the condition that it be informed at its next meeting of any decisions reached.

Within a maximum of four months following the closing date for the corporate financial year, the Board of Directors shall close out the balance sheet, the operating account, the profit and loss account, and take cognizance of the auditors’ report; it shall then forward these documents, together with an activities report, to the supervisory authority for approval.

If the Board receives no objections from the supervisory authority within three months of the date of dispatch of said documents, the accounts shall be considered approved and the Directors fully discharged from the management thereof.

administration

Art. 12. Responsibility for the administration of the corporation shall be entrusted to a General Manager appointed by a three-fourths majority of the Board of Directors upon a proposal from the supervisory authority.

The General Manager shall ensure that the staff of the National Bank for Agricultural Development performs its duties and that the decisions of the Board of Directors and the Loan Committee are implemented.

To enable him to carry out this mission, the Board of Directors may decide by three-fourths majority to delegate some of its powers to him and, inter alia, authorize him to:

sign all documents, notifications and agreements which commit the corporation;

pay and collect all amounts and issue receipts for the same;

open all current accounts;

grant and accept all guarantees, and contract for, authorize, grant or withdraw all sureties and guarantees, whether cash, securities or otherwise;

represent the corporation before the courts and engage in legal actions of any kind as either plaintiff or defendant;

buy, sell or exchange all shares of stock and securities and accept, guarantee, endorse and rediscount all bills, drafts, letters of exchange and commercial paper, and rediscount the portfolio; and

conclude all rental and lease agreements for real estate, and authorize all arrangements, consents, waivers and removals of encumbrances, distraints or attachments before or after payment.

The General Manager shall prepare and submit to the Board of Directors the annual report on the corporation’s financial position and activities, the balance sheet, the profit and loss account, and all other financial documents.

He shall represent the National Bank for Agricultural Development vis-à-vis all third parties; in order for the corporation to be committed, all the acts and operations of the corporation decided on by the Board of Directors or by its authority must be signed by the General Manager or by the person to whom he has delegated the power to do so.

He shall hire and dismiss all staff members, determine the amount of their wages and assign the duties of each employee subject to the conditions imposed by labor law.

He may delegate his authority for a given purpose and toward a given objective to one or more representatives of the corporation. During his periods of leave, said delegations of authority must be confirmed by the Board of Directors.

The remuneration of the General Manager shall be determined by the Board of Directors and approved by the supervisory authority.

incompatibilities

Art. 13. The duties of General Manager shall be incompatible with holding a political office. The exclusion clauses and incompatibilities laid down by the laws and decrees in force with respect to carrying out the duties of President, Director, General Manager and Auditor in joint-stock companies shall be applicable to the individuals carrying out the corresponding duties at the National Bank for Agricultural Development.

Art. 14. Any agreement between the National Bank for Agricultural Development and its General Manager, whether concluded directly or indirectly, shall be null and void unless authorized in advance by its Board of Directors.

The same shall hold true for agreements between the National Bank for Agricultural Development and any enterprises of which the General Manager of the National Bank for Agricultural Development or one of its Directors is an owner, partner or investor, manager, director or general manager.

loan committee

Art. 15. The membership of the Loan Committee, provided for by Article 12 of these by-laws, shall be specified by decree.

accounting

Art. 16. The accounting operations of the National Bank for Agricultural Development shall be carried out and defined in conformity with the prevailing rules of the banking profession.

The corporate financial year shall begin on October 1 and end on September 30 of each year.

auditors

Art. 17. Two auditors, at least one of whom is from the private sector, shall jointly draw up an annual report on the operations of the National Bank for Agricultural Development.

They shall carry out their mission under the terms and conditions prescribed by law.

surveillance

Art. 18. The National Bank for Agricultural Development shall engage in ongoing surveillance of all individuals or juridical persons receiving advances or loans from it.

reserve fund

Art. 19. After completing the accounting of administrative costs and expenses and after providing for amortizations and reserves, all net profits for each fiscal year shall be transferred to a Reserve Fund to be used as the Board of Directors determines. Nevertheless, the decisions of the Board in this regard shall be effective only if the supervisory authority raises no objection to them within one month of its receipt of the minutes of the Board of Directors meeting during which the relevant decisions were reached.

stamp duties and registration fees

Art. 20. All documents, contracts and loans and, in general, all papers drawn up by the National Bank for Agricultural Development in implementation of these by-laws shall be exempt from stamp duties and registration fees. This exemption shall be noted in writing on the above documents.

Art. 21. In the event of dissolution, the assets shall be realized and liabilities paid off in accordance with the law pertaining to commercial corporations.

Nevertheless, any grants, bequests and other gifts which may have been provided under special earmark shall devolve upon those government agencies or institutions acknowledged to serve the public interest which are capable of carrying out the wishes of the donors.

Decree No. 68-305 1

Concerning the National Bank for Agricultural Development

[June 24, 1968]

Art. 1. The initial capital of the National Bank for Agricultural Development, fixed at 700 million francs, is subscribed as follows:

Republic of Ivory Coast466.7 M
Agricultural Products Price Stabilization and Support Fund116.7 M
Central Bank of West African States58.3 M
Central Fund for Economic Cooperation58.3 M
700 M

Art. 2. The National Bank for Agricultural Development shall be administered by a governing board of 12 members, including:

The Minister for Agriculture or his representative;

The Minister of Livestock Production or his representative;

The Minister for Economic and Financial Affairs or his representative;

The Minister for Planning or his representative;

A representative of the National Assembly;

A representative of the Economic and Social Council;

A representative of the Central Bank of West African States;

A representative of the Central Fund for Economic Cooperation;

Two representatives of the Agricultural Products Price Stabilization and Support Fund;

A technician from the Ministry of Agriculture; and A representative of the private sector.

Art. 3. In addition to reviewing credit applications, the Loan Committee shall oversee the proper functioning of the National Bank for Agricultural Development in general.

It shall be composed of Directors of the Bank and be presided over by the Chairman of the Board of Directors.

It shall include the following members:

The Minister of Agriculture or his representative or the technician from his Ministry;

The Minister for Economic and Financial Affairs or his representative;

The Minister of Planning or his representative;

The representative of the Agricultural Products Price Stabilization and Support Fund;

The representative of the Central Bank of West African States; and;

The representative of the Central Fund for Economic Cooperation.

To these ex officio members shall be added the Minister of Livestock Production or his representative whenever matters technically coming within his purview are studied.

The Director-General shall attend the meetings and arrange for the relevant administrative services.

Art. 4. On proposals from the ministries or agencies concerned, the members of the Board of Directors and of the Loan Committee shall be appointed by decree of the Minister for Economic and Financial Affairs.

Decree No. 68-306 1

Establishing supervision of the National Bank for Agricultural Development

[June 24,1968]

Art. 1. The National Bank for Agricultural Development is hereby placed under the supervision of the Minister for Economic and Financial Affairs and of the Minister for Agriculture.

Art. 2. The Minister for Economic and Financial Affairs shall ensure that the National Bank for Agricultural Development complies with the provisions of the law of August 4, 1965 2 organizing the banking profession and with its implementing decrees.

Furthermore, the National Bank for Agricultural Development shall be subject to the provisions of Law No. 62-255 of July 31, 1962 3 on the equity holdings of the Government in joint-stock companies, its representation on the boards of directors of such enterprises, and the supervisory powers of government commissioners.

Art. 3. The Minister for Agriculture shall have supervisory powers with respect to the definition and implementation of agricultural credit policy.

*

Mr. Franks, Senior Economist in the Midwest African Division of the African Department, is a graduate of the University of Cambridge, the European Institute of Business Administration (Insead), and the University of Sussex.

Other members of the African Department who collaborated on the introduction to Ivory Coast were Messrs. Jean Philippe Briffaux, Michel Fiator, and Christopher Green (who has since left the Fund) and Ms. Ulrike Wilson.

1

Traité Constituant I’Union Monètaire Ouest Africaine. Signed on November 14, 1973.

1

Statuts de la Banque Centrale des Etats de l’Afrique de l’Ouest. Signed in Dakar on December 4, 1973.

1

Accord de Coopération entre la République Française et les Républiques Membres de l’Union Monétaire Ouest Africaine. Signed at Dakar on December 4, 1973.

1

Convention de Compte d’Opérations. Done at Dakar on December 4, 1973.

2

Reserve tranche purchase is defined in Article XXX (c) of the Articles of Agreement of the International Monetary Fund.

1

Accord Instituant une Banque Ouest Africaine de Développement. Signed on November 14, 1973.

1

Statuts de la Banque Ouest Africaine de Développement. Signed in Abidjan on January 5, 1967.

1

The decree was signed at Abidjan on September 5, 1966 and was published in the Journal officiel de la République de Côte d’lvoire (hereinafter referred to as Journal officiel)> September 15, 1966.

2

Conseil national du Crédit.

3
Article 25 of Law No. 65-252 of August 4, 1965 states:

“There shall be created a National Credit Council and a Bank Control Commission, the composition and powers of which shall be fixed by decree.”

It should be noted that Article 75 of Law No. 75-549 of August 5, 1975 provides that all legal provisions in conflict with that law and particularly those of Law No. 65-252 are rescinded.

1

The decree was signed at Abidjan on September 5, 1966 and was published in the Journal officiel, September 15, 1966.

2

Commission de contrôle des banques et des établissements financiers.

3

See footnote 3 to Decree No.66-330 on page 477.

4

Article 24 of Law No. 65-252 of August 4, 1965, states:

“Banks shall be required to furnish, whenever the Control Commission or the Central Bank so requests, any information, clarification, and supporting evidence deemed useful in carrying out their mission.

“The Bank Control Commission may entrust the departments of the Central Bank with any such tasks as verifying or checking on the strength of documentary records and on the spot, if necessary, operations and accounts of banks and credit establishments as will allow it to make sure that such establishments have complied with the provisions of this law and with general or special provisions adopted for the implementation thereof.

“Any bank refusing to meet requests for information from the Control Commission or from the Central Bank shall be liable to a fine of up to 10,000 francs for each day of delay, which shall accrue to the Treasury.”

It should be noted that Article 75 of Law No. 75-549 of August 5, 1975 provides that all legal provisions in conflict with that law and particularly those of Law No. 65-252 are rescinded.

1

The order was signed at Abidjan on January 5, 1967 and was published in the Journal officiel, January 19, 1967.

1

The decree was signed at Abidjan on April 26, 1966 and was published in the Journal officiel, May 19,1966.

2

Association professionnelle des banques et établissements financiers.

3
Article 26 of Law No. 65-252 of August 4, 1965 states:

“All banks that have been approved and registered shall be required to join the Professional Association of Banks organized under the provisions of the law of September 21, 1960.”

It should be noted that Article 75 of Law No. 75-549 of August 5, 1975 provides that all legal provisions in conflict with that law and particularly those of Law No. 65-252 are rescinded.

1

Loi N° 75-549 du 5 août 1975, portant réglementation bancaire, signed in Abidjan on August 5, 1975 and published in Journal officiel, No. 43, September 4, 1975 (p. 1564), incorporating the amendments made to Law No. 75-549 by the Corrigendum published in the Journal officiel, No. 20, May 6, 1976 and appended to the French text of that law.

1

The decree was signed at Abidjan on April 26, 1966 and was published in the Journalofficiel, May 19, 1966.

2
Article 19 of Law No. 65-252 of August 4, 1965 states:

“Foreign banks must be registered pursuant to the conditions provided in Article 11 and must, in order to carry on their activities in Ivory Coast:

“Maintain, at the office established in Ivory Coast, special accounting records of the operations they conduct in the territory of the Republic;

“Furnish, for all these operations and their investments in Ivory Coast, proof of capital resources equal to the minimum capital provided for in the Article hereinabove.”

It should be noted that Article 75 of Law No. 75-549 of August 5, 1975 provides that all legal provisions in conflict with that law and particularly those of Law No. 65-252 are rescinded.

3
Article 21 of Law No. 65-252 of August 4, 1965 states:

“Banks and financial establishments shall be required to set up a reserve fund supplied by a percentage of all premiums and charges collected during the course of the year. This percentage shall be fixed by decree.”

It should be noted that Article 75 of Law No. 75-549 of August 5, 1975 provides that all legal provisions in conflict with that law and particularly those of Law No. 65-252 are rescinded.

1

The order was signed at Abidjan on October 3, 1967 and was published in the Journal officiel, October 12, 1967.

1

The decree was signed at Abidjan on April 26, 1966 and was published in the Journal officiel, May 19, 1966.

2
Articles 1 and 7 of Law No. 65-252 of August 4, 1965 state:

Art. 1. As banks, pursuant to the terms of this law, shall be considered only enterprises or establishments under public or private law that make it their regular business to receive from the public or from the Administration or from State establishments, in the form of deposits or otherwise, funds which they use either for their own account or for account of their customers in discount operations, in credit operations or in financial operations.’

Art. 7. Financial establishments shall be considered as enterprises regularly engaging in credit operations, regardless of the relevant term, in the form of advances with pledges or guarantees, participation, acceptance in pawn or for discount, includng real-property operations comprising credit operations in any form whatever.’

It should be noted that Article 75 of Law No. 75-549 of August 5, 1975 provides that all legal provisions in conflict with that law and particularly those of Law No. 65-252 are rescinded.

3
Article 16, paragraph 9 of Law No. 65-252 of August 4,1965 states:

“The Public Prosecutor of the Republic shall immediately request the court record or any equivalent documents of Ivorian or foreign persons referred to in this Article.’

It should be noted that Article 75 of Law No. 75-549 of August 5, 1975 provides that all legal provisions in conflict with that law and particularly those of Law No. 65-252 are rescinded.

4
Articles 11 and 15 of Law No. 65-252 of August 4, 1965 state:

Art. 11. No enterprise or establishment considered as a bank pursuant to the provisions of Article 1 hereinabove may carry on its business without having previously been authorized in pursuance of the conditions laid down by decree and registered on the list of banks. Applications for opening additional offices shall be subject to the same formalities.’

Art. 15. No enterprise may, without having previously been registered in the list of financial establishments, carry on the activities defined in Article 7.

“The rules for and procedures of registration or cancellation shall be the same as those defined for banks.”

It should be noted that Article 75 of Law No. 75-549 of August 5, 1975 provides that all legal provisions in conflict with that law and particularly those of Law No. 65-252 are rescinded.

1

The decree was signed at Abidjan on April 26, 1966 and was published in the Journal officiel, May 19, 1966.

2

Articles 29 to 32 of Law No. 65-252 of August 4, 1965 state:

Art. 29. All members of the various advisory and control bodies that are in existence or may be created with a view to intervening, directly or indirectly, as regards organization, banking regulations, and credit management and persons called upon even exceptionally to perform any relevant work shall be strictly required to maintain professional secrecy in respect of all matters they have to deal with, for any reason whatever, subject to the penalties provided for by Article 378 of the Penal Code.

Art. 30. Violations of this law, especially of the provisions of Article 2, shall make any persons committing them liable to disciplinary sanction, imposed by the Commission for Control of Banks and Financial Establishments; if warranted, to punitive sanction pronounced by the criminal courts pursuant to the terms laid down in Articles 31 to 33 hereinafter.

Art. 31. Any person who, acting either for his own account without being registered in the List of Banks or the List of Financial Establishments or for account of a company not recorded in these same lists, engages in the activities specified in Articles 1 and 7 of this law or makes use of the terms ‘banks’ or ‘banker’, in the conditions provided for in Article 11 above, shall be liable to imprisonment for from one month to two years and to a fine of from CFAF 500,000 to CFAF 5,000,000 or to only one of these two penalties.

Art. 32. Anyone who, acting as a representative of a bank, knowingly gives inaccurate information to the Central Bank or to the Control Commission shall be liable to a fine of from CFAF 500,000 to CFAF 2,500,000.

“In case the same violation is repeated, the offender shall be punished by a fine of from CFAF 1,000,000 to CFAF 5,000,000 and with imprisonment of from one to six months, or by only one of these two penalties.”

It should be noted that Article 75 of Law No. 75-549 of August 5, 1975 provides that all legal provisions in conflict with that law and particularly those of Law No. 65-252 are rescinded.

1

The law was signed at Abidjan on February 12, 1962. It was amended by Art. 8 of Law No. 65-424 of December 20, 1965, published in Journal officiel, 1966, p. 1.

2

Fonds National d’Investissement.

1
The following is provided in 108 Finance, Economic Affairs, and Planning of January 24, 1963:

“In implementation of the provisions of Art. 3 of Decree No. 62-134 of April 28, 1962:

(a) On the death of a contributor, the initial stock certificate may be replaced by certificates of equal total value issued in the names of the heirs;

(b) In case of fund transfers or company mergers, the transferor’s certificate may be transferred to the acquirer’s name;

(c) In case of liquidation of a company, the certificate held by the company may be replaced by certificates issued in the name of each partner in proportion to their respective interests, as indicated by the liquidation account.”

2

While the original French word is “souscription,” the editor queries whether this should be understood as “description” in English.

1

The law was signed at Abidjan on July 29, 1968 and was published in the Journal officiel on August 8, 1968.

2

Fonds de Garantie des Crédits aux Entreprises Ivoiriennes.

1

The decree was signed at Abidjan on October 26, 1968 and was published in the Journal officiel, on November 21, 1968, amended by Decree No. 69-206 of May 22, 1969, published in the Journal officiel on June 5, 1969.

1

Executed in Paris on February 4, 1955. Promulgated by General Order No. 1502 S.ET of March 2, 1955; published in Journal officiel No. 8 of April 1, 1955.

2

Crédit de la Côte d’lvoire.

3

Caisse Centrale de la France d’Outre-Mer.

4

Fonds d’Investissement pour le Développement Economique et Social.

5

This version of the Charter was registered in Abidjan on July 8, 1963 and subsequently modified and approved by the Board of Directors on April 4, 1968 and on December 22, 1970. It replaces the original Charter of 1955.

1

The decree was signed at Abidjan on June 23, 1975.

2

Banque Nationale pour l’Epargne et le Crédit (bnec).

3

This decree and the by-laws are not published in this volume.

1

Published in the Journal officiel, 1968, p. 107. Amended by Decree No. 68-306.

2

La Banque Nationale pour le Développement Agricole.

1

Published in the Journal officiel, 1968, p. 1106. Amended by Decree No. 69-305, July 4, 1969, published in the Journal officiel, 1969, p. 1040.

1

Published in the Journal officiel, 1968, p. 1106.

2

Law No. 65-252 has been abrogated by Law No. 75-549 of August 5, 1975.

3

This law has been abrogated by Law No. 70-633 of November 5, 1970.

    Other Resources Citing This Publication