A substantial change (compared to the previously published version of the criteria) is the lowering of the minimum threshold for equity capital for non-MIC companies (those registered by the Directorate of Investment and Company Administration (“DICA”)) from US$500,000 to US$50,000. Now the US$500,000 threshold applies only to MIC companies.
The other noteworthy change is the clarification of the wording regarding the maximum debt-to-equity ratio, which previously stated that it was “either 3:1 or 4:1”. The new wording states that the ratio is 4:1 for MIC companies, and 3:1 for non-MIC companies.
Recap of requirements for CBM approval of offshore loans
Below is a quick summary of the latest version of the offshore loan criteria. The Central Bank would consider the following major financial parameters of the proposed transaction when considering the application:
For the full list of the criteria, please refer to the Central Bank’s web-page.