Category: Banking and Negotiable Instrument

PROCLAMATION NO. 657/2009. A PROCLAMATION ON PREVENTION AND SUPPRESSION OF MONEY LAUNDERING AND THE FINANCING OF TERRORISM

Brief note

This law compels banking and financial institutions and other persons referred to as ‘accountable persons’ to disclose information they obtained from their customers. This in effect significantly changes the law of secrecy in Ethiopia. Before the enactment of this law, Ethiopian civil and criminal law provides protection against the disclosure of confidential information of customers. It also to some extent grant privilege to the customer or client to claim privilege if such confidential information is going to be offered as an evidence before a judicial proceeding. Lawyers in Ethiopia, for instance, are prohibited to testify against their clients regarding matters they obtained from their clients in a confidential status.

Now, no more protection is given to customers or clients if the confidential information pertains to “investigation or prosecution of crime involving money laundering or financing of terrorism or for taking regulatory measures.” According to article 6 of the proclamation,  no obligation of confidentiality imposed by other laws shall affect any obligation under this Proclamation to report or furnish information. This holds true for most of the banking and micro-finance institutions in Ethiopia. However, the duty of disclosure is not limited only to such institutions. It also includes the following institutions; Money transfer agent or a foreign exchange bureau; a financial leasing company, the Ethiopian Revenues and Customs Authority, a notary office or an organ empowered to authenticate documents, a licensing authority, the Ethiopian Investment Agency; non-governmental organization, religious institution or other charitable organization, an advocate, an auditor or a licensed accountant, a person engaged in real estate business, a dealer in precious metals and gems, a broker, dealer or investment adviser;

Assume an advocate representing a person suspected of money laundering. According to this law the advocate will be under an obligation to disclose any information he obtained from the suspect.  From the suspect’s perspectives hiring a lawyer amounts to confession. Hence, it is unimaginable that he gets representation of a lawyer.

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PROCLAMATION NO. 657/2009.

A PROCLAMATION ON PREVENTION AND SUPPRESSION OF MONEY LAUNDERING AND THE FINANCING OF TERRORISM

WHEREAS, money laundering and the financing of terrorism as it not only threaten security, but also compromise the stability, transparency, soundness and efficiency of the financial system;

WHEREAS, the effort to combat money laundering and the financing of terrorism is being undertaken internationally and since Ethiopia is part thereof;

WHEREAS, it has become imperative to legislate special law to have an effective implementation of the provisions of the Criminal Code criminalizing money laundering as an offence;

NOW, THEREFORE, in accordance with

Article 55 sub article (1) of the Constitution of the Federal Democratic Republic of Ethiopia it is hereby proclaimed as follows: Continue reading “PROCLAMATION NO. 657/2009. A PROCLAMATION ON PREVENTION AND SUPPRESSION OF MONEY LAUNDERING AND THE FINANCING OF TERRORISM”

The Requirements to Carry on Insurance Business in Ethiopia

(Taken from Law of Banking, Negotiable Instruments and Insurance

Prepare by Fasil Alemayehu and Merhatbeb Teklemedhn
Sponsoredby Justice Justice and Legal System Research Institute)

           The Requirements to Carry on Insurance Business
Art 656 of the Commercial Code provides that the law shall determine the conditions under which physical persons or business organizations may carry on insurance business.
Therefore, we have to refer to other parts of the commercial code and other laws to find out as to who may undertake insurance business and the conditions under which it may be undertaken. Accordingly, Art 513 of the code provides that banks and insurance companies cannot be established as private limited companies, i.e., a private limited company cannot engage in banking, insurance or any other business of similar nature. Similarly, Art 6(1) of the Licensing and Supervision of Insurance Business Pro No 86/1994 provides that no person may engage in insurance business of any type unless it applies to and acquires a license from the National Bank
of Ethiopia for the particular class or classes of insurance. Furthermore, Art 4(1) and Art 2(3) of the same proclamation provide that such person has to be a share company as defined under Art 304 of the commercial code.
These requirements / conditions in effect prevent foreigners from engaging in insurance business and foreign banks from opening branches and operating in Ethiopia. The most probable reason for this position is the need to protect infant domestic insurance companies which do not have the desired financial strength, knowhow and human resources to be able to compete with foreign banks which have superior capacity in these areas.
The other condition that a person must fulfill to obtain a license relates to the minimum capital of the company, i.e., it must have a minimum capital of 3 million Birr if it is applying for license to undertake general insurance business i.e., insurances other than insurance of persons, and 4 million Birr if it is applying for a license to undertake long term insurance business, i.e., insurance of persons and 7 million where the application is to undertake both classes of insurance. Such capital has to be paid up in cash and deposited in a bank in the name of the company to be established as an insurance company.

Directive No. SBB/40/2006 AMENDMENT OF BRANCH OPENING

Directive No. SBB/40/2006 AMENDMENT OF BRANCH OPENING

Directive No.  SBB/40/2006 AMENDMENT OF BRANCH OPENING

1. Issuing Authority

These Directives are issued by the National Bank of Ethiopia pursuant to the authority vested in it by Article 41 of the Monetary and Banking Proclamation No. 83/1994 and Article 5(4) of the Licensing and Supervision of Banking Business Proclamation No. 84/1994.

2. Definition

For the purpose of this directive the term:

2.1 “The Bank” shall mean National Bank of Ethiopia;

2.2 “Branch” shall mean any place of business at which deposits are received or cheques are paid out or money is lent and other banking business as defined in article 2(2) of Proclamation number 84/1994 is solicited.

3. Requirement

A bank shall obtain prior authorization from the Bank to open a branch office.

A bank planning to open a branch shall submit a duly completed application attached to these directives together with a covering letter to the Bank and shall pay the fee indicated under article 6 of these directives.

A bank authorized to open a branch shall open the said branch and commence operation within 6(six) months from the date of the grant of authorization.

A bank authorized to open a branch shall notify the Bank the date it plans to commence operation in the new branch 15 (fifteen) days before the planned date of commencement of operation.

Before commencing operation a bank authorized to open a branch shall fulfill the following:

Ensure that the bank’s relevant policy and procedure manuals, and NBE directives are distributed to appropriate staff members of the branch to be opened;

Ensure that the branch is adequately guarded;

Display in a visible area of the branch working hours, copy of the bank’s license and branch authorization;

Ensure that the banking hall and staff operating area are suitable for the type of business to be undertaken in the premises housing the branch including but not limited to:

Proper ventilation and circulation of fresh air;

Suitable and clean sanitary service;

Sufficient and suitable lighting;

Cashiers’ Till, access   to which is restricted to authorized persons.

Ensure that the branch has appropriate strong room or safe/vault;

Place fire extinguishers in appropriate area;

Have insurance policy at least for the following:

Fire and other perils, Burglary and theft, Fidelity, Cash and valuable in premises and transit,

Ensure that outer doors of the building housing the branch are of heavy duty metal;

Ensure that all windows and glass walls of the building housing the branch are

reinforced with metal grills;

Obligation of the Bank

The Bank shall give a written response within five working days from the date of receipt of the application.

5. Scope of Application

5.1 Requirements set under sub-article 3.5 herein above shall be applicable on new branches as well as branches opened before the effective date of these Directives.

5.2 Branches opened before the effective date of these Directives shall fulfill

requirements under sub-article 3.5 herein above latest by June 30, 2007.

6. Fee

A bank applying to open a branch shall pay an investigation fee of Birr 500 (Birr five hundred) for each branch.

7. Prohibition

No bank shall relocate its branch without prior notification and approval by the Bank.

8. Repeal

Directives No. SBB/22/1996 are hereby repealed and replaced by these directives.

9. Effective Date

These Directives shall enter into force as of the 8th  day of May 2006.

 

Directive No. SBB/41/2007 Transfer Duties and Responsibilities Related to Establishment and Operation of Export Credit Guarantee Scheme from the National Bank of Ethiopia

Directive No. SBB/41/2007

Directives to Transfer Duties and Responsibilities Related to Establishment and Operation of Export Credit Guarantee Scheme from the National Bank of Ethiopia to Development Bank of Ethiopia

Whereas, national exporters need to compete on an equal footing with other exporters in increasingly competitive foreign markets and satisfy foreign buyers’ requirements;

Whereas, it is necessary that exporters with bona-fide export orders should not lose the export opportunity due to inability to get bank credit;

Whereas, operation of enhanced export credit guarantee schemes has been found to be supportive of the export sector by availing the necessary financial resources from banks for pre and post-shipment of exports;

Whereas, export credit guarantee schemes have proved to be necessary vehicles to facilitate exporters’ access to bank credit;

Whereas, the Government of Federal Democratic Republic of Ethiopia has decided to transfer duties and responsibilities related to establishment and operation of export credit guarantee scheme from National Bank of Ethiopia to Development Bank of Ethiopia;

Now, therefore, in accordance with Articles 6 and 61 of the Monetary and Banking Proclamation No. 83/1994, the National Bank of Ethiopia hereby issues these directives.

Article 1

Definitions

For the purpose of these directives, unless the context provides otherwise:

“The Bank” shall mean National Bank of Ethiopia;

“Guarantor” shall mean Development Bank of Ethiopia;

“Financing Banks” are licensed commercial banks (excluding Development Bank of Ethiopia) in Ethiopia;

“Bankable Export Project” shall mean a project appraised by financing banks in line with their applicable credit policy and procedures and found within acceptable risk level by the Guarantor;

“Export” is non-coffee export;

“Export Credit Guarantee” shall mean a guarantee provided by the Guarantor to safeguard export financing banks against losses resulting from the export transactions they finance;

“Exporter” is a person engaged in non-coffee exports;

“Existing Exporters” shall mean exporters who have been engaged in export business for at least 12 months prior to the date of application for export loan under export credit guarantee scheme who can produce evidence of receipt of export proceeds over those months;

“New Exporters” shall mean exporters who have been engaged in export business for less than 12 months at the time of applying for export loan under export credit guarantee scheme;

“Fund” is a special fund created by the Guarantor for financing guarantee

settlements under Export Credit Guarantee Scheme;

“Outstanding Active Export Credit Guarantees” shall mean guarantees issued by the Bank to financing banks, which on the effective date of these directives (i) have not expired or (ii) original due dates have expired but extended by the Bank and not yet due;

“Outstanding Inactive Export Credit Guarantees” shall mean export credit guarantees issued by the Bank before the effective date of these directives which have been (i)

claimed by financing banks, or (ii) claimed by financing banks and disputed, or (iii) settled by the Bank and under litigation or transferred to Legal Services Department of the Bank for litigation;

1.13 “Perishable Export Commodities” shall mean export commodities      subject to significant deterioration in quality or spoilage or decay, such as fruits, vegetables, molasses, unpreserved meat, flowers, live animals and other commodities as determined by the Bank;

1.14 “Pre-Shipment Export Credit Guarantee” is a guarantee provided by the

Guarantor up to a maximum of 365 days to financing banks to cover pre-shipment export loan extended to exporters;

1.15 “Post-Shipment Export Credit Guarantee” is a guarantee provided by the

Guarantor up to a maximum of 180 days to financing banks to cover post-shipment export loan extended to exporters.

Article 2

Eligibility Criteria

Exporters shall satisfy all of the following in order to be considered eligible for export credit guarantee:

The export project to be financed under the export credit guarantee scheme shall be bankable;

Exporters shall not carry “loss” category loans, as defined in the Bank’s Directives on Provisioning, owed to any bank in Ethiopia;

Exporters shall present a bona-fide order from a foreign buyer;

Exporters shall produce evidence of a valid investment certificate and/or trade license;

New exporters shall:

produce property or other collateral equivalent to at least 40% for producer exporters and 50% for other exporters of the amount of the loan requested;

produce evidence that all proceeds from non-perishable  goods to be exported shall be paid through irrevocable letter of credit; however, no letter of credit shall be required for perishable export commodities;

Existing exporters shall produce from local banks documentary evidence about receipt of export proceeds in the 12 months preceding the date of application for export loan under export credit guarantee scheme;

Exporters shall submit all documents required by financing banks to conduct their normal credit risk analysis.

Financing banks may approve pre-shipment or post-shipment credit to exporters upon fulfillment of the above eligibility criteria.

Article 3

Issuance of Guarantee

Upon written request of a financing bank, the Guarantor shall issue export credit guarantee to cover 80% of the outstanding loan balance and interest thereof extended to an exporter by the financing bank, provided the request is acceptable to the Guarantor.

Article 4

The Guarantee Amount

The Guarantor may issue export credit guarantee to:

4.1 Existing exporters, who fulfill eligibility criteria set under article 2.1 herein above, up to 100% of export proceeds actually received through financing banks from non-coffee exports in the 12 months preceding the date of application for export loan under export credit guarantee scheme;

New producer exporters, who fulfill eligibility criteria set under article              2.1 above, up to two point five (2.5) times the estimated value of the pledged collateral

Other new exporters, who fulfill eligibility criteria set under articles 2.1 above,  up to  two (2) times the value of the pledged collateral;

Article 5

Obligations of Financing Banks

Financing banks shall:

critically evaluate credit worthiness of the exporter who applies for a loan and shall

ensure that the export project to be financed is bankable;

finance only bankable export projects;

Collect credit information from all banks in Ethiopia to ensure that an exporter

applying for export loan does not carry “loss” category loans owed to any bank;

exercise all reasonable and usual care regarding operations of export financing and act with utmost good faith;

Channel to the exporter’s loan account, in settlement of the loan, all export proceeds

collected from an exporter after the disbursement of the loan covered by the export credit guarantee.

promptly notify the Guarantor within 15 days of the occurrence of any event or development likely to cause a loss or default;

collect on behalf of the Guarantor interest due to it  on loans covered by export credit guarantee; and

act as the agent of the Guarantor to recover the due amount from the defaulting exporter and report to the Guarantor actions taken on such borrowers promptly.

Where the exporter defaults, the financing bank, subject to prior written  agreement of the Guarantor, may:

extend the due date of  pre or post shipment export credit   covered by export credit guarantee for a maximum of 180 days if it determines that the financial position of the borrower is sound and the loan repayment problem is temporary; or provide additional loan that may not exceed 50 percent of the existing outstanding loan covered by export credit guarantee and extend the due date of both the new and the existing loans for a maximum of 180 days if it determines that the borrower will be rehabilitated and settle the loans out of the cash flow to be generated.

Financing banks shall submit to the Guarantor:

Relevant credit risk analysis report and all other documents necessary to ensure the export project to be financed is bankable; and Monthly export credit performance report in accordance with the table attached with these Directives or any other format developed by the Guarantor. Such report shall be filed within twenty days after the end of the reporting month.

Article 6

Revolving Credit

Financing banks may, during the life of the export credit guarantee, repeatedly disburse loan to a borrower for export purposes equivalent to the amount of the partial or full loan settlement referred to under sub-article 5.1.5, so long as the outstanding balance of the loan does not exceed the export credit guarantee issued to cover it.

Article 7

Obligation of the Exporter

Exporter shall:

7.1 Provide accurate information, accompanied with all supporting documents, to financing banks on their business, export activities and bank loan repayment status;

7.2 Exercise due care so as to ensure that the advances are used for the purposes they are earmarked for;

7.3     Repay the entire amount of the outstanding loan and interest thereof   to the financing bank on or before due date of the loan;

7.4     In case of difficulties experienced in manufacture or shipment of goods or realization of export proceeds from foreign buyers, they should discuss the problem and the proposed course of action with their financing banks.

Article 8

Risk Coverage

8.1 The Guarantor shall cover 80 percent of the risk, which may result from default of repayment;

8.2 The financing bank shall bear the remaining portion (20 percent) of default risk.

Article 9

The Guarantee Fund and Fee

9.1 The Guarantor shall create a Guarantee Fund Account for funding the Export Credit Guarantee Scheme;

9.2 Financing banks shall pay, out of the interest rate stated under article 10.1 hereunder, 2 (two) percent of the outstanding loan balance covered by export credit guarantee per annum to the Guarantor calculated in line with interest income accrual or collection policy and procedure of the respective financing bank. They shall pay such interest to the Guarantor on quarterly basis;

9.3 Interest income collected in line with article 9.2 above shall be transferred to Guarantee Fund Account.

9.4 The Guarantor may invest the money in the guarantee fund account in risk free and liquid assets such as Treasury bills and transfer the income from such investments to its Income Statement.

9.5 Guarantee fund created by the Bank in line with provisions of article 9 of the Bank’s Directives No. SBB/38/2006 shall be used to settle claims against export credit guarantee filed with the Bank before the effective date of these directives;

9.6 The closure of the Guarantee fund account with the Bank shall be decided by the Bank .

Article 10

Rate of Interest

10.1   Financing banks shall charge their respective prevailing lowest lending interest

rate on pre- or post-shipment loans covered by the export credit guarantee scheme;

10.2 Non-compliance with the stipulation of the credit guarantee scheme might result in charging the penal rate used by the financing bank.  In the case of proven mis-use of funds, the financing bank may demand the immediate repayment of the loan.

Article 11

Collateral

11.1 The Export Credit Guarantee of the Guarantor serves as part of the collateral when exporters apply for financing;

11.2 When applying for post-shipment credit, the exporter shall hand over to the financing bank all the necessary shipping and other documents relating to the goods shipped for export.   Also, the exporter shall authorize the financing bank to collect or receive payment from the foreign buyer, on the basis of which the post-shipment credit is sanctioned to the exporter.  Goods in possession of the financing bank are considered as additional collateral providing the necessary security for the financing bank;

11.3 In case a borrower defaults, the Guarantor and financing bank shall share the cash collateral, or any proceeds from liquidation of any property pledged as collateral, or any proceeds from liquidation of collateral secured through court ruling, in proportion to the risk they took in lending to the defaulting borrower, that is, the Guarantor shall be entitled to collect 80%, leaving the balance (20%) to the financing bank.

Article 12

Repayment

12.1 Without prejudice to article 5.2 above, repayment period for pre-shipment credit shall not exceed 365 days.  Pre-shipment advances shall be repaid by handing over the shipping documents to the financing bank within 10 days after the goods have been shipped for export.  The date of shipment is the date of the stamp on the bill of lading or other shipping documents.  The repayment of loan may be by way of adjusting from post-shipment credit obtained against the documents or by payment in an accepted manner;

12.2 Exporters, adjusting the pre-shipment credit, shall have the possibility of extending the credit into the post-shipment period. Exporters willing to use this facility shall have to apply well in advance to their financing bank for a post- shipment credit to avoid possible delays, after the goods have been shipped.  Any non-compliance with the above stipulation may result in rejection of the exporter’s post-shipment credit application and immediate repayment obligation of the pre-shipment credit;

12.3 Without prejudice to article 5.2 above, repayment period of the post-shipment credit shall not exceed 180 days. Post-shipment advances will be adjusted by the financing bank out of payments received from the foreign importer to enable it to automatically settle the outstanding debt of its exporter-borrower, after payment from the foreign buyer has been collected.

Article 13

Settlement of Guaranteed Portion to Financing Bank

13.1 In case an export credit goes on default, the Guarantor shall pay the guaranteed portion of the loan amount lent to the exporter within seven days after the complete set of necessary documents have been presented to it.  The Guarantor, however, shall not pay any interest on the export credit during the seven days following submission of complete set of documents by financing banks;

13.2 When repayment of the full or partial amount of defaulted loan is effected by the defaulting exporter to the financing bank after the settlement of the guaranteed portion, the financing bank shall transfer the money to the Guarantor within 7 days;

Article 14

Expiry of Guarantee

14.1 Export Credit Guarantee shall be issued for a specific period of time that shall not exceed i) 365 days to cover pre-shipment export credit and ii) 180 days to cover post shipment export credit.  However, the Guarantor, upon request of financing banks, may extend expiry date of the guarantee for a maximum of 180 days from its expiry date.  At the last day of the guarantee period, unless extended in writing by the Guarantor, the Guarantee shall be null and void;

14.2 Under normal circumstances, the last day of the Guarantee shall be that

indicated on the “Export Credit Guarantee Letter” as ending date of the Guarantee.

Article 15

Default and Non-compliance

15.1 Where an exporter defaults and cannot qualify for loan rescheduling or

restructuring stipulated under article 5.2 above, he/she shall be suspended from all types of bank credit from the entire banking system until he/she fully settles the outstanding loan including interest and charges;

15.2 To facilitate the suspension, the Guarantor shall circulate the names of all defaulters under the export credit guarantee scheme to all banks.  Moreover, the Guarantor shall publish the names of such defaulters in widely circulating newspapers;

15.3 Upon receipt of defaulters list stipulated under sub-article 15.2 above, all banks shall deny provision of new bank credit service(s) and shall not renew all existing overdraft or other credit facilities to any one exporter in the list until the Guarantor notifies them that the exporter has fully settled his/her overdue export loans;

15.4 If a financing bank does not comply with the provisions of these directives, the Guarantor maintains the power to reduce guarantee coverage and, in extreme cases, to suspend new coverage for a period of four years.

Article 16

Inspection

The Bank may undertake an inspection of any bank, including the Guarantor, to verify  its compliance  with the provisions of these Directives.

Article 17 Administration of Outstanding Active Export Credit Guarantees

17.1 The Guarantor shall administer outstanding active export credit guarantees issued before the effective date of these directives in line with the terms and

conditions of the guarantees set at the time of their issuance.

17.2 The Bank shall transfer all files and documents in its possession related to outstanding active export credit guarantees to the Guarantor.

Article 18

Administration of outstanding Inactive Export Credit Guarantees

The Bank shall administer outstanding inactive export credit guarantees that are outstanding as of the effective date of these Directives until their full settlement or resolution.

Article 19 Repeal

The Establishment and Operation of Export Credit Guarantee Scheme Directives

Number SBB/38/2006 is hereby repealed and replaced by these Directives.

Article 20

Effective Date

These directives shall come into force as of the 1st day of February 2007.

 

Directive No. SBB/45/2008 RESERVE REQUIREMENT (4th Replacement)

Directive No. SBB/45/2008 RESERVE REQUIREMENT (4th Replacement)

Whereas, the National Bank of Ethiopia is vested with powers, duties and responsibilities of monetary management and regulation and supervision of banks; Whereas, statutory reserve requirement, which obliges banks to hold a proportion of their deposit balance with the National Bank of Ethiopia, is one of the important monetary policy instruments and prudential regulation tools;

Whereas, liquidity in the banking system remained relatively high;

Whereas, commercial banks have strong incentive to enhance profitability through credit extension;

Whereas, it has been found necessary to check monetary growth so as to avoid risk of high inflation and ensure a stable macroeconomic environment for a healthy economic growth;

Now, therefore, the National Bank of Ethiopia has issued these directives pursuant to the authorities vested in it by Article 41 of Monetary and Banking Proclamation No. 83/1994 and article 16 of Licensing and Supervision of Banking Business Proclamation No. 84/1994.

1. Short Title

These Directives may be cited as ” Reserve Requirement – 4th Replacement “

Directives No. SBB/45/2008.

2. Opening Accounts with the National Bank of Ethiopia

Banks operating in Ethiopia shall open two separate Birr accounts with the National Bank of Ethiopia to be used as follows:

2.1. Reserve Account

A reserve account shall exclusively be used to maintain the reserve balance stated under article 2 of these directives;

No bank shall withdraw any money from its reserve account without prior approval of the Supervision Department of the National Bank of Ethiopia.

2.2 Payments and Settlement Account

A payments and settlement account shall be used to carry out all day-to-day transactions of banks through the National Bank of Ethiopia.

3. Requirement

Any bank operating in Ethiopia shall at all times maintain in its Reserve Account stated under article 2.1 of these directives 15% (fifteen percent) of all Birr and foreign currency deposit liabilities held in the form of demand (current) deposits, saving deposits and time deposits.

4. Computation of Reserve

4.1 Cash items in process of collection, if included under deposits, shall be deducted therefrom in computing the balance of total deposits for reserve purposes;

4.2 Cash items in process of collection through the National Bank of Ethiopia shall not be acceptable as reserve until credited to the reserve account;

4.3 The reserve required shall be computed on the net deposit balance, i.e. excluding cash items in process of collection, shown at the end of each reporting week.

5. Reserve Deficiencies

5.1 Deficiencies in reserve balance are subject to a penalty;

5.2 The penalty shall be assessed at a rate twice the current average rate of interest on loans and advances charged by banks computed on the amount of the deficiency in reserve and multiplied by the number of days over which the reserve account remained deficient;

5.3 The National Bank of Ethiopia may waive the penalty stated herein above on grounds it considers acceptable.

6. Reports

For the purpose of determining strict compliance with the reserve requirement stated under article 2 of these Directives, properly checked and signed reports, showing balances as of each Wednesday, shall be submitted to the Supervision Department of the National Bank of Ethiopia.  The reports shall be submitted not later than Tuesday of the following week and shall show the balance of each type of deposit under article 2 herein above, reserve balance with National Bank of Ethiopia and the excess/shortfall in reserves.

7. Repeal

Directives No. SBB/42/2007 is hereby repealed and replaced by these Directives.

8. Effective Date

These Directives shall enter into force as of the 7th day of April 2008.