Notice No. 09/2024 Establishing the Special Credit Scheme for Housing and Real Estate Construction in Angola

CONTINUATION OF NOTICE No. 09/2024 Page 1 of 15 PUBLISHED IN THE OFFICIAL GAZETTE, SERIES I, NO. 242, OF 20 DECEMBER 2024 NOTICE NO. 09/2024 SUBJECT: FINANCIAL SYSTEM − Special Credit Scheme for Housing and Construction of Real Estate for Housing, Tourist Enterprises and Catering and Similar Establishments There being a need to update the scope of application of the Notice on Housing and Construction Loans, particularly about the maximum value of housing loans and the purposes of construction loans. Pursuant to the combined provisions of article 25(a) of Law no. 14/ 21, of 19 May - Law on the General Regime of Financial Institutions, and article 98(1), both of Law no. 24/21, of 18 October - Law on the National Bank of Angola, I hereby determine: I HEREBY DETERMINE: Chapter I General Provisions Article 1 (Object)

1. This Notice establishes the following: a) The Special Credit Scheme for Housing and for Construction of Real Estate for Housing, Tourist Developments and Catering and Similar Establishments. b) The eligibility requirements, terms, conditions and costs applicable to these credits, as well as their treatment in the calculation of compulsory reserves.

CONTINUATION OF NOTICE No. 09/2024 Page 2 of 15 2. With regard to credit for Tourist Enterprises and Catering and Similar Establishments, only properties located in areas of tourist interest and potential, created under Presidential Decree no. 92/21, of 16 April, or registered in the Integrated Tourism Management System - ITMS, are eligible. Article 2 (Scope) This Notice applies to banking financial institutions that carry out credit activities under the supervision of the National Bank of Angola, in accordance with the provisions of Law No. 14/21 of 19 May, the Law on the General Regime of Financial Institutions. Article 3 (Definitions) For the purposes of this Notice, the following shall be taken into account: a) Self-construction - a case in which the private client, owner or promised purchaser of a plot of land, hires a legally constituted construction company to build his property for his own permanent dwelling. b) Building credit - a credit granted to the promoter of a housing project or tourist, catering and similar facilities; c) Housing credit - credit granted to an individual customer for the purchase of real estate for his/her own permanent residence: i. Already built; or, ii. Under construction or to be built in the immediate future, by self￾building or as part of a housing development under construction; d) Real estate agent - a company authorised to sell a property to a natural person on behalf of a third party, pursuant to Law no. 14/12, of 4 May - Real Estate Mediation Act; e) Developer - a construction company and/or owner of a housing project, as well as a duly incorporated property brokerage company;

CONTINUATION OF NOTICE No. 09/2024 Page 3 of 15 f) Infrastructured plots - plots located in an area where basic infrastructures have been installed, namely sanitary facilities, power lines, water supply, paved roads and public lighting; g) Tourist establishments - establishments designed to provide accommodation services to the general public for a fee, with a range of facilities and complementary services according to their type and specificity; h) Restaurants and similar establishments - establishments designed to provide, against payment, food, and drink services for tourist purposes, either inside or outside the establishment. Article 4 (Credit Risk Assessment and Management)

1. The granting of credit under this Notice is subject to compliance with the internal regulations of each Banking Financial Institution and the following regulations of the National Bank of Angola, in all cases not inconsistent with the provisions of the attached model, which forms an integral part of this Notice: a) Notice on Information Obligations in Credit Contracts b) Instruction on the Granting of Credit, in so far as it does not contradict the provisions of this Notice; c) Instruction on the Granting of Credit with regard to the time limits for analysis, notification of the final decision, formalisation and making the credit available.
2. In assessing and mitigating credit risk, financial institutions shall: a) Before granting credit: i. Make a rigorous assessment of the financial capacity of customers to meet their obligations under credit agreements; ii. Assess the risks associated with the property and, where appropriate, the developer;

CONTINUATION OF NOTICE No. 09/2024 Page 4 of 15 b) During the term of the credit, regularly monitor the following: i. The construction of the property, if applicable; ii. Their clients, in order to identify at an early stage any financial difficulties or other circumstances which may increase the risk of default, and to take appropriate action to prevent or remedy the situation. Article 5 (Cost of Credit)

1. The interest rates and commissions set out in this Notice are global maximum rates. Banking Financial Institutions may apply lower rates and commissions, considering their assessment of the credit risk associated with each customer and their commercial strategy.
2. The commissions charged at the time the credit is granted may not exceed 1% (one per cent) of the total value of the credit to be granted.
3. No other commissions may be charged during the term of the credit, except in the case of the restructuring of the credit or the extension of its term, each of which is limited to 0.5% (half a percent).
4. No commission may be charged for early repayment of the credit, whether in part or in full.
5. The following costs, which are not covered by the commissions referred to in paragraphs 2 and 3 of this article, shall be charged separately to the applicant for the credit or, after the credit has been granted, to the borrower: a) Valuation of real estate, including land, works and projects, when applicable, at the time of the initial credit risk assessment, as well as when necessary for reasons of credit restructuring or under the conditions defined in the regulations of the National Bank of Angola; b) The fees of the project/works supervisor appointed by the financial institution to supervise the progress of the project/work;

CONTINUATION OF NOTICE No. 09/2024 Page 5 of 15 c) Fees and remuneration related to notarial and registration acts in the granting of credit; d) The cost of insurance policies; e) Any taxes payable on the credit, commissions and interest; and; f) Commissions related to the brokerage of the property. 6. The maximum nominal interest rate applicable to mortgage loans is seven per cent (7%) per annum; 7. The maximum nominal interest rate applicable to loans for the construction of residential buildings, tourist facilities, restaurants and similar establishments is 10% (ten per cent) per annum; Article 6 (Public Disclosure of the Availability of this Scheme) Banking financial institutions must visibly publicise the availability of the credit modalities defined herein on their institutional website, as well as the requirements for accessing them. Chapter II Housing Credit Article 7 (Eligibility Criteria)

1. The maximum value of the property to be financed under this Notice is determined by the financial capacity of the Mortgagor and, if applicable, the Guarantor, and may not exceed KZ 150,000,000.00 (one hundred and fifty million Kwanzas).
2. For the acquisition of a property for permanent own use, by a) Purchase of infrastructure land and/or self-build; i. Purchase of infrastructure land and/or self-build;

CONTINUATION OF NOTICE No. 09/2024 Page 6 of 15 ii. Purchase of a property built or to be built by a promoter. b) Credits restructured after the entry into force of this Communication, for proven reasons of financial difficulty on the part of the borrower, provided that the amount remaining at the time of the restructuring is equal to or less than the amount referred to in paragraph 1 of this Article. 3. New properties owned by banking financial institutions that are part of a housing project and that have been received in payment or fulfilment of a construction loan, with a sales value equal to or less than that established in paragraph 1 of this article, may be sold to their clients and financed under the terms of this Notice, provided that all its requirements are met. 4. Properties that have been allocated by the State to a citizen under the terms of the regime for access to housing built with public funds may also be financed under the terms of this Notice, provided that the conditions of this Article are met. 5. The Special Housing Credit Scheme established in this Notice does not grant the credit granted: a) Under the terms of an internal home loan policy or special conditions intended exclusively for the employees of the banking financial institution itself; b) To a customer who is a borrower under another current mortgage loan, whether or not that loan is originated by another financial institution or guaranteed by another property. c) When the seller of the property is the spouse, de facto partner, ascendant or descendant up to the second degree in the direct line of descent of the Customer or of companies managed by them; d) For the purchase of land without infrastructure and/or for self-building or for the purchase of a property in a residential project under construction or built on land with these characteristics; and,

CONTINUATION OF NOTICE No. 09/2024 Page 7 of 15 e) To carry out works to improve or increase the built area of an existing dwelling. Article 8 (Terms and Conditions Applicable to Credits)

1. The maximum duration of the credit to be granted under this communication is 30 (thirty) years, including restructuring, as established by Presidential Decree 259/11 of 30 September.
2. The ratio between the amount of the credit granted under this Notice and the lower of the purchase price or the appraised value of the property pledged as collateral for the credit at the time of granting the credit may not exceed 100% (one hundred percent).
3. The banking financial institutions must assess the best option for the client between progressive instalments and constant instalments, considering the characteristics of each, including the potential increase in their income during the term of the credit.
4. Irrespective of the value of the property, the loan granted under this Notice must be the only loan secured by that property, and under no circumstances may other bank loans be taken out to finance it, even under conditions different from those set out in this Notice, and/or be contracted with other banking financial institutions.
5. The Banking Financial Institutions may require, as an additional condition to the granting of credit, the intervention of guarantors in the operations, when the level of risk of the client justifies it.

CONTINUATION OF NOTICE No. 09/2024 Page 8 of 15 Chapter III Construction Credit Article 9 (Eligibility Criteria)

1. Developers of real estate construction projects are eligible for financing under the terms of this Notice: a) Housing, with a maximum sales value of KZ 150,000,000.00 (one hundred and fifty million kwanzas) per unit; projects may include units of different types and sales values, as long as they do not exceed the maximum value; b) Tourist enterprises and catering and similar facilities, where the amount to be financed shall not exceed KZ 200,000,000.00 (two hundred million Kwanzas).
2. The terms and conditions of this Notice shall also apply to necessary improvement and/or modernisation works in tourist developments and catering and similar facilities.
3. Developers of the projects referred to in the preceding paragraphs are required to meet the following criteria: a) Be a company incorporated under the Companies Act, Companies Act, the Unipersonal Companies Act or the Cooperatives Act b) Have organised accounts and accounts certified by an accountant or expert accountant registered with the Charter of Accountants and Expert Accountants of Angola. c) Have their tax situation legalised; d) Have proven experience in carrying out construction projects of a similar nature to the project for which they are applying for funding under this Notice; e) Not have been convicted in legal proceedings for breach of contract;

CONTINUATION OF NOTICE No. 09/2024 Page 9 of 15 f) To be registered as a real estate developer with the Instituto Nacional de Habitação (National Housing Institute) and/or another regulatory body competent for this purpose; g) A valid contractor's licence is required for the developer who is also the developer of the project. 4. The special construction credit scheme established in this Notice does not cover credit for: a) Acquisition of land that is not infra-structurised, as well as housing projects to be built on that land; b) Equipping tourist resorts and catering and similar establishments, namely for the purchase of furniture, equipment and the like. Article 10 (Terms and Conditions Applicable to Credits) Construction projects financed under this Notice must be dimensioned in such a way that they can be built in no more than 3 (three) years. Chapter IV Mandatory reserves Article 11 (Deduction from Mandatory Reserves)

1. Credits issued under Notice no. 09/22 of 6 April, Notice no. 09/23 of 3 August and this Notice, regardless of their status, are to be deducted from the mandatory reserves to be established by each Banking Financial Institution, in the following percentages: a) Housing credits – 100% (one hundred per cent);

CONTINUATION OF NOTICE No. 09/2024 Page 10 of 15 b) Credit for the construction of residential property - 50% (fifty per cent), and in the case of Housing Cooperatives, the deduction is 75% (seventy￾five per cent); and, c) Credit for the construction of tourist developments and catering and similar establishments - 75% (seventy-five per cent). 2. The following are no longer deductible from mandatory reserves: a) Construction loans extended due to the project's construction period exceeding 3 (three) years; and, b) Credits in default for more than 180 (one hundred and eighty) days. Article 12 (Reporting) Banking financial institutions are required to submit a monthly list of disbursed and restructured contracts in force to National Bank of Angola. The format and information to be included in this list will be defined in their own regulations. Chapter V Final Provisions Article 13 (Period of Validity) The terms and conditions applicable to credits granted or restructured under Article 5 of this Notice shall remain in force for the duration of each credit. Article 14 (Sanctions) Failure to comply with the provisions of this Notice constitutes a misdemeanour and is punishable under the provisions of Law No. 14/21 of 19 May - Law on the General Regime of Financial Institutions.

CONTINUATION OF NOTICE No. 09/2024 Page 11 of 15 Article 15 (Doubts and Omissions) Doubts or omissions in the interpretation and application of this Notice shall be settled by the National Bank of Angola and should be sent to the following e-mail address dro@bna.ao. Article 16 (Revocation) Notice no. 09/2023, of 3 August, and all regulations contrary to the provisions of this Notice are hereby revoked. Article 17 (Entry into Force) This Notice shall enter into force on the day following its publication. BE IT PUBLISHED Luanda, 27th December 2024. THE GOVERNOR MANUEL ANTÓNIO TIAGO DIAS

CONTINUATION OF NOTICE No. 09/2024 Page 12 of 15 ANNEX Risk Assessment The granting of credit for housing or construction implies the need to assess risks other than the financial capacity of the customer. To this end, commercial banks must establish procedures to identify, adequately assess and mitigate the risks associated with the property, the builder and, where appropriate, the developer, in accordance with the following principles:

1. When financing (i) the acquisition of land for infrastructure and/or self￾construction (housing credits), (ii) the acquisition of a property forming part of a housing project under construction (housing credits), (iii) the acquisition of credit for infrastructure and/or the construction of a housing project (construction credits), commercial banks must ensure that: a) The value of the loan requested is in line with the market value of the property or project to be financed, once construction has been completed; b) A valuation of the land and/or building, property or housing project, depending on the purpose of the credit, has been obtained from an expert registered with the CMC and appointed by the Commercial Bank. c) The property has been duly legalised in the Land Registry and the Property Registry, allowing the creation of a mortgage in favour of Commercial Bank. i. Obtain an up-to-date land registry certificate; ii. Confirm the existence of the allotment licence, its validity and the respective detachment of the plots; iii. Confirm that the horizontal property has been registered with the Land Registry and, where applicable, the Land Office; iv. Verification of the ownership of the land by the client applying for a housing loan for self-construction or by the developer of a housing project, if the loan to be granted does not include the purchase of the land;

CONTINUATION OF NOTICE No. 09/2024 Page 13 of 15 v. Confirmation that the land is free from liens or encumbrances, including pledges or mortgages in favour of third parties, except where: a. The customer buys a property that is part of a residential development under construction, in which case the land may be mortgaged to the bank financing the development and the mortgage must be released when the property is paid for in full; b. The customer buys a plot of land for his own construction or for the construction of a housing project with a mortgage, in which case the land must be free of liens or encumbrances at the time of the public deed of sale and payment of the corresponding amount, so that the mortgage can be registered in favour of the Commercial Bank. d) The work/project is properly licensed, budgeted and planned: i. Confirmation of the existence of a valid building permit in the name of the landowner; ii. Confirmation of the existence of a building project approved by the competent authority; iii. Obtain a budget showing the estimated value of the works and a schedule of works and staged payments; iv. Obtaining the draft construction contract in the case of self-construction or financed construction of housing projects, except when the builder of the housing project is the owner and developer of the same; e) Builders or developers, as the case may be, meet the following requirements: i. They are an entity incorporated under the Companies Act, the One Person Companies Act or the Co-operatives Act.

CONTINUATION OF NOTICE No. 09/2024 Page 14 of 15 ii. They have organised books and accounts certified by an accountant or expert accountant registered with the Angolan Charter of Accountants and Expert Accountants. iii. They have a regular tax and social security situation. iv. They have proven experience in conducting construction projects of a similar nature to the project for which they are applying for funding under this Notice. v. Have not been convicted in legal proceedings for breach of contract or fraud; vi. They are registered with the National Housing Institute as a property developer, where applicable; vii. They have a valid contractor's licence, where applicable. 2. In the case of mortgage loans for the purchase of a finished property, whether new or used, Commercial Banks must ensure that: a) The amount of credit requested is consistent with the market value of the property and must be assessed by an expert registered with the Capital Markets Commission (CMC) and appointed by the Commercial Bank. b) The property is duly registered with the Land Registry and allows for the constitution of a mortgage in favour of the Commercial Bank: i. Obtain up-to-date registration and land registry certificates confirming the registration of the property in the Municipal Land Registry and the Land Registry Office and confirming that the property is free of liens or encumbrances or that it will be so at the time of disbursement of the loan and the public deed of sale; ii. Confirmation that the property, including that which is part of a horizontal property, has been duly legalised and allows the transfer of ownership to the mortgage applicant at the time of the disbursement of the loan and the public deed of sale, and the simultaneous registration of the mortgage in favour of the Commercial Bank;

CONTINUATION OF NOTICE No. 09/2024 Page 15 of 15 iii. Obtain a licence to use. 3. In cases where the conclusion of the promissory deed of sale and/or the construction contract depends on the approval of the credit by the Commercial Bank, the latter must ensure that the conditions which formed the basis of its approval are reproduced in the final contracts concluded between its clients, the sellers, builders or developers, as the case may be, and that the allotment and construction licences remain valid.