The Settlement of Disputes Between the Deposits Guarantee Fund and Depositors During Reimbursement of Deposits: An Issue Partially Regulated

In a bid to reinforce the protection of creditors during crises in credit institutions, the Central African Economic and Monetary Community (CEMAC) lawmaker created the Deposits Guarantee Fund (FOGADAC) in 2004. This Fund went operational in 2011, with the aim of reimbursing depositors in case of unavailability of funds in credit institutions of the sub region or during their liquidation. In the course of such reimbursement disputes may arise. Conscious of this, the legislator has, in the Regulation creating the Fund and other related instruments, provided administrative and judicial mechanisms of their settlement. The objective of this article is to examine these mechanisms with the view of determining their effectiveness. Upon critical analysis of the Regulation creating FOGADAC and other CEMAC instruments in this domain, it is realized that the mechanisms put in place by the said instruments are ineffective. This article brings out their various lacunae and proposes possible reforms.