The financial year 2002 marking the ten year of existence of the Bank has been a bridge year for at least three reasons :

Firstly, because it marks a step in the life of the IBB : 10 years, an age in full development and therefore an age of reflection on the future of the Bank.

A reflection that we started since the end of the fiscal year 2001 and which enabled us to adopt strategies for the next ten years.

Secondly, because while remaining the reliable outcome of the past years with regard to the disrupted socio-economic environment the financial year 2002 is ending on a note of optimism with the recovery of the economic growth and the effective international financial assistance. As a matter of fact, the first disbursements on the World Bank and IMF credits occurred since October 2002.

Thirdly, because though a difficult economic context, the Bank's output was maintained beyond the billion of Burundi francs during the year 2002, which means a consolidation that should propel the Bank towards more improved outputs once the recovery of the economic activity becomes a reality .

A consolidation so appreciable since it is also recorded in a constraining regulatory context which was translated in the restriction to recourse to the refinancing by the Central Bank and by the increase in its rent, from 14 to 15.5 %.

These performances constitute the core result of multidirectional actions based on the strategies adopted since two years back and that, for the year 2002, have focussed on the strict supervision of the credit activity, a near approach to the foreign currency clientele, the control of the operational and computer organisation and the pursuit of the proximity policy.

An approach inspired by the need to increase productivity in order to preserve the profitability in spite of the erosion of margins and the rise of risks.

The strict control of the credit activity

While facing the rise of risks due to the economic hardships generated by the socio-economic crisis in the country, the Bank has carried on its efforts to control the credit qualitatively and quantitatively.

Thus, and concerning the credit network portfolio, three management measures have been taken, notably :

Measures also inspired by the scarcity of central Bank resources, which have been subject to meetings of sensitisation with wide fractions of the clientele.

A new approach as far as resources are concerned

Scarcity of Central Bank resources and scarcity of means of payment in foreign currency, a context that has spurred the Bank to develop a new approach towards the foreign currency clientele, essentially the non governmental organisations operating in the humanitarian sector and the projects funded by the World Bank or the European Union.

This approach has mainly consisted of giving priority to the quality of the Bank services and the professionalism of its teams, major elements of differentiation of INTERBANK BURUNDI.

Distribution network

At the same time, the strengthening of the internal collection was coupled with the continuous geographical extension of our distribution network.

In January 2002 the Jabe Branch was established, being the 11th site of the Bank's operations, with the aim to serve the zones of Bwiza and Nyakabiga, two areas with a very high commercial vitality.

Like the preceding years, the physical extension has been carried out along with actions of improvement of the distribution network operations.

It is in that framework that a two-week workshop has been held in February 2002 for the managers of our branches upcountry.

The themes tackled were related to credit control, inter-branches operations as well as the marketing within their respective entities.

Operational and Computer Organisation

The constant improvement of the Bank's organisational structures which combine centralisation and decentralisation, has been again subject to a particular attention in 2002.

Thus, in addition to traditional meetings of sensitisation of the staff, especially the new agents the heads of section, the data capture attendants, the checking and rechecking of operations, on the operational aspects of the organisation and the security, an exercise of quantification of tasks and timing of operations has been conducted successfully all along the year.

The objective pursued being the rapidity and the reliability in the management of operations long time priorities of the Bank as far as the clientele is concerned.

In the sector of information technologics, conscious of its importance as a tool to support the production, the communication, the change and the competitiveness, we undertook to take stock of the Bank's computerisation.

After the exercise, two performance indicators for computer control and a follow up of software items while two meetings of sensitisation of the staff were held on the computer security and the behaviour of users vis-à-vis the terminals and other computer equipment.

PROSPECTS

The financial year 2003 is beginning on two obvious signals of hope on the economic point of view.

As a matter of fact, from this point of view, the two credit agreements signed with the World Bank and the International Monetary Fund during the last quarter of 2002 open the way to the next resumption of the international and bilateral co-operation extended to the traditional donors of the country.

164 Million U.S. dollars could be disbursed this year in favour of Burundi among them M.46.5 are confirmed on the World Bank credits (B1 34) and IMF (M 12.5).

However, no more blind optimism

Indeed, on one hand, disbursements of those amounts are conditioned to the good implementation of the economic and financial programme negotiated with the two Bretton Woods institutions, which will imply a rigorous regulatory environment for the financial system as far as credits, change or obligatory reserves are concerned.

On the other hand, the socio-economic evolution of the country with all its effects on the economic level inspires always caution as regards the formulation of prospects.

The 2003 environment will have to meet a consolidation of our gear instruments at the three fold organisation, managerial and commercial point of view.

Fortunately enough, our achievements in the field of commercial development, operational organisation and efficiency of the network are some among the assets for the implementation of the year 2003 objectives.

In the extension of the strategies adopted in 2002 which were based on the “operational management”, these objectives are structured around the four main lines :