(Business in Cameroon) - COBAC, CEMAC region’s banking regulator, has decided to temporarily modify some banking regulations to limit the impacts of the coronavirus pandemic on the sector and thus guarantee the financial integrity of this region. This decision will take effect on June 1.
In this regard, the requirement to transmit notarized documents concerning the decisions of corporate bodies and other documents needed to examine the assent and advance notification of the banking and microfinance institutions subject to the regulation is suspended.
Also, the deadlines for transmitting regulatory documents to the General Secretariat of the Cobac are extended to 31 July 2020 for documents due on 30 April and to 31 October 2020 for those due on 30 September 2020. From July 2020, in addition to the Cerber and Sesame reporting requirements, reporting institutions must send the Cobac general secretariat a weekly report on their cash position and a monthly report on the credits affected by the economic situation related to Covid-19.
Reporting institutions can send their documents to the Commission electronically. The deadline for notifying credit institutions of the Cobac Secretary General's recommendation on the distribution of dividends is extended to 30 June 2020 for the results of the 2019 financial year. "No credit institution may distribute a dividend in respect of the results of the financial year in the absence of this recommendation," the Commission states.
However, says the Cobac, these temporary measures in the Cemac zone cannot go beyond December 31, 2021. They may be canceled at any time by the Chairman of the Cobac after the favourable evolution of the crisis caused by the Covid-19 pandemic.