Bill 45/2020 defining and suppressing usury in Senegal now requires that all loan contracts mention the Global Effective Rate (Teg). The overall effective rate makes it possible to assess the real cost of the credit granted to a borrower and the need to take into account, in the costs included in the calculation of the Teg, the charges linked to the guarantees that may be attached to the loans as well as the fees of ministerial officials.”
According to Abdoulaye Daouda Diallo, Minister of Finance and Budget, this development has made it necessary to bring Law No. 81-25 of 25 June 1981 on the suppression of usury and legal interest rates into line with the basic texts of the institutional reform of Umoa and the BCEAO, in particular the law regulating banking regulations and the law regulating Sfds.
Thus, indicates the Minister, “the present bill provides for the obligation to involve the Banking Commission or the Central Bank in the decisions of the trial court ordering the temporary or permanent closure of credit institutions and decentralized financial systems, in the event of violations of the legal provisions on usury, in accordance with the procedures provided for by the law regulating banking and those of the SFD law.”
According to the report, the commissioners thus welcomed the relevance of this bill, which is part of the dynamic of providing the banking sector with the best possible framework, in particular through the substantial strengthening of its legal system.
Given the importance of the new measures enacted in this bill, some commissioners suggested that the Minister implement an effective communication strategy to inform populations about major innovations in this vital sector