IS IT NECESSARY FOR LOCAL COMPANIES TO HAVE A LOAN LICENCE BEFORE CONTRACTING LOANS
This depends on where the loan is coming from.
However, when it concerns foreign loans and or borrowing, direct investment originating from abroad or made from abroad, as well as issuing, advertisement or sale of foreign securities within CEMAC may be subject to special control measures.
Banks shall be solely empowered to verify and execute transactions that are not subject to authorisation by the competent administrative services. Such transactions include
-Loans that constitute a direct investment abroad which have already been authorized;
-loans contracted by resident approved banks
-Loans other than those mentioned above, where the aggregate outstanding amount owed by the same borrower does not exceed 100 million CFA Francs
-Loans directly related to service delivery abroad either by individuals or corporate bodies whose usual place of residence or corporate headquarters is located within CEMAC in the form of branches or subsidiaries within CEMAC of corporate bodies head quartered abroad or financing business transactions between CEMAC and foreign countries or even between foreign countries in which resident individuals or businesses participate
-Loans granted by resident approved banks.
-Other loans where the outstanding amount does not exceed 100 million CFA Francs
Moreover, loans exempt from authorization as well as repayment of such loans shall be subject to a declaration submitted to the competent services of the Ministry in charge of finance and of the Central Bank within 30 days following each transaction.
Loans contracted by approved banks as well as repayments thereof shall be declared to the Minister in charge of Finance and to the Central Bank within 30 days following completion of such transactions.
In a nutshell national companies do not need a special authorisation before contracting loans but are oblige to present a surety as per to repayment of the said loan and equally declaration as indicated above .
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