DIRECTIVE N°04/20120F 07/05/20120F THE NATIONAL BANK OF RWANDA DETERMINING CONDITIONS FOR PROVISIONING LOANS SECURED BY MOVABLE PROPERTIE: Pursuant toLaw n° 35/2007 of 30/11/2007 governing the Central Bank of Rwanda. especially in Articles 33 and 36: Pursuant to Law n° 007/2008 of 08/04/2008 concerning Organization of banking especially in Anticles 35 and 36; Pursuantto Law n°1 1/2009 of 14/05/ 2009 on sceurity interests in movable proper:y: The National Bank of Rwanda hereafter referred to as “Central Bank”. decrees: Ar ne: Purpose of theDirective This Directive aims at establishing the conditions that banksshall comply with when provisioni for loan losses that are secured by movable properties Article 2: Conditions for provisioning When provisioning, abank shall take into consideration at least 50% on the ea:rying amountsor market valuesof the following novable propesties a) ‘Trading stock: Inventory of stocks of harvested cereal crops and cash crops, and ether stocks of goods available for sale or lease: : b) Animals and livestock in groups and including their proceeds: cows, goats, rabdits. pigs, horses, sheep and poultry: ©) Vehicles: Motor vehicles (tracks. cars, motoreyeles). airerafis and ships: and 4) Plant and machinery Except the above, other secured movable properties shall be provisioned at 100%, Banksshall ensure that movable properties are properly valued, well documented, registered wit the Registrar General as security interests ed insurance company operating in Rwande The movable properties shall be insured with a li except those specified under paragraph I. b of this article. Article 3: Repealing provision All prior provisions contrary to tis Directive are hereby repealed,icle 4: Commencement ‘This Directive shal! come into force on the date of its signature. Done at Kigali on 07/05/2012