Prepared by Marwan Mikhael
Law n°69-1161 of 1966
For a more extensive discussion of remittances, see the companion paper on external sector developments.
The sharp increase in broad money in 2001 was mainly the result of a large amount of conversion of formerly uncounted cash holdings of French francs ahead of the introduction of the Euro at the beginning of 2002.
Law number 92-004/PR
Report by Raymond Bernard of July 10, 2003.
Statuts de la Banque Centrale des Comores et l’accord de coopération monétaire. In the discussion below, these sets of laws for the BCC will be referred to as the “BCC law”.
The agreement stipulates the establishment of a foreign exchange account called “compte d’opérations” at the French Treasury similar to the accounts opened by the countries in the CFA zone. Under the agreement, the BCC is also obliged to hold at least 65 percent of its foreign reserves at the French Treasury. The account is supervised and managed by the French Treasury and France guarantees the convertibility of the Comorian franc at the agreed fixed exchange rate.
In addition, a draft circular on non performing loans has recently been issued in line with international standards defines nonperforming loan as: (i) loans for which more than three months have passed since the last debt service payment; (ii) loans for which the financial situation of the borrower leads to the conclusion of a high risk of default; and (iii) loans for which a judicial conflict exists between the financial institution and the borrower.