Regulatory Alerts2017-06-28
Regulation (NAP) - Amendment of Key Interest Rates of the Central Bank of São Tomé and Príncipe
The Central Bank of São Tomé and Príncipe issued Permanent Applicable Regulation No. 10/2017 to amend its key interest rates, fixing the reference rate at 9% and the liquidity provision facility rate at 11%. This adjustment corrects an excessively high spread between active and passive rates, thereby stimulating financial intermediation, private investment, and economic activity. The regulation aligns monetary policy with fiscal expenditure containment and officially entered into force on June 28, 2017.
Central Bank of São Tomé and Príncipe, dated June 28, 2017. Relevant Revocation Data: Central Bank of S.T.P. NAP (PERMANENT APPLICABLE REGULATION) ISSUE DATE: 28/06/2017 VALIDITY START: 28/06/2017 DOCUMENT NO.: 10/2017 PAGE: 1/1 Subject: Amendment of the Key Interest Rates of the Central Bank of São Tomé and Príncipe
Considering the recent evolution of the national and international economy, as well as the outlook for 2017; Considering also that the spread between active and passive interest rates remains excessively high due to the elevated active interest rates charged by banks, a factor that constrains financial intermediation, with repercussions on private investment and economic activity performance; Considering further that the orientation of fiscal policy signals public expenditure containment, which necessitates adopting monetary policy measures to reinforce complementarity between these policies; It is desirable to align monetary policy orientation with stabilization and growth policy;
In these terms, the Central Bank of São Tomé and Príncipe, pursuant to Article 32 of its Organic Law (Law No. 8/92), determines the following:
Article 1. (Setting of Interest Rates) a) The reference interest rate of the BCSTP is set at 9%; b) The interest rate for liquidity provision facilities is set at 11%.
Article 2. (Revocation) Permanent Applicable Regulation No. 3/2015, dated January 28, is hereby revoked.
Article 3. (Entry into Force) This Regulation enters into force on June 28, 2017.