Press Release

In the current economic context, and in line with arrangements being made by central banks and other regulatory institutions around the world, the Bank of Mauritius (“Bank”) is introducing transitional arrangements for the regulatory capital treatment of IFRS 9 provisions. This decision aims at alleviating the impact of the COVID-19 pandemic on the provisioning levels of banks and non-bank deposit taking institutions (“financial institutions”).

The transitional arrangements will allow financial institutions to add back a portion of their IFRS 9 provisions to their regulatory capital. These arrangements, which will start this year, will phase out over a 4-year period.

Financial institutions electing to apply the above-mentioned transitional arrangements will be required to make a disclosure on same in their audited financial statements.

The details of the transitional arrangements are annexed for ease of reference. The documents are also available on the Bank’s website on https://www.bom.mu/financial-stability/supervision/guideline.