Instruction No. 04/2023 of March 30

---

INSTRUCTION NO. 04/2023 of March 30 SUBJECT: FINANCIAL SYSTEM - Mandatory Reserves Having the need to update existing rules for calculating and complying with mandatory reserves; Exercising the powers conferred by Article 54 of Law No. 24/21, dated October 18, the BNA Law. I DETERMINE:

1. Banking Financial Institutions under the supervision of the Banco Nacional de Angola must maintain mandatory reserves in accordance with this Instruction.
2. The incidence base for mandatory reserves, in national currency, consists of amounts recorded according to auxiliary tables (1, 2, 4, 6, 7, 8 and 9) in the following accounts of the Financial Institutions Chart of Accounts (ADJUSTED CONTIF):

• 2.10.10. Demand Deposits;
• 2.10.20. Time Deposits;
• 2.10.80. Other Deposits.

3. The incidence base for mandatory reserves, in foreign currency, consists of amounts recorded according to auxiliary tables (1, 2, 4, 6, 7, 8 and 9) in the following accounts of the Financial Institutions Chart of Accounts (ADJUSTED CONTIF):

• 2.10.10. Demand Deposits;
• 2.10.20. Time Deposits;
• 2.10.80. Other Deposits.

4. For the purposes of this Instruction, balances in Bankita accounts, both demand and time, in national and foreign currency are not eligible for the calculation of mandatory reserves.

5. Assets defined in specific regulations are eligible for fulfilling mandatory reserves in national currency (NC) and foreign currency (FC).

6. The calculation of mandatory reserves is performed on a biweekly basis, on the first business day of the fortnight following the constitution of the balances referred to in numbers 2 and 3 of this Instruction.

7. The compliance with the calculated mandatory reserves, as per the previous number, is done on a biweekly average basis from the first to the last business day of the fortnight following the constitution of the balances referred to in numbers 2 and 3.

8. The incidence base defined in numbers 2 and 3 is subject to mandatory reserve coefficients, as established in specific regulations.

9. The exigibility for the incidence base in national currency, subject to the reserve coefficient as established in specific regulations, is calculated on a biweekly basis, based on the arithmetic mean of balances determined in the respective accounts on business days during the period, following this formula: • ETn = crn {∑ [Dtn (T –1)]/N} In which: • ETn = exigibility of period T in NC, as established in specific regulations on the incidence base, excluding accounts of the Central Government, Local Governments and Municipal Administrations; • crn = mandatory reserve coefficient as established in specific regulations; • T = T-th calendar period in which compliance with mandatory reserves occurs, (T=1, 2, 3,...,n); • T-1 = T-th calendar period in which the final daily credit balances are constituted, recorded in the incidence base accounts referred to in number 2, excluding Central Government, Local Governments and Municipal Administrations accounts, (T-1=-n, 1, 2,..., n-1); • Dtn (T – 1) = final daily credit balances recorded in the incidence base accounts referred to in number 2, excluding Central Government, Local Governments and Municipal Administrations accounts, reported on the first business day of the exigibility compliance period; and, • N = number of business days in period T-1.

10. The exigibility for the incidence base in foreign currency (FC), subject to the coefficient as established in specific regulations, is calculated on a biweekly basis, based on the arithmetic mean of balances determined in the respective accounts on business days during the period, following this formula: • ETe = cre {∑ [Dte (T –1)]/N} In which: • ETe = exigibility of period T in FC on the incidence base, as established in specific regulations, excluding accounts of the Central Government, Local Governments and Municipal Administrations; • cre = mandatory reserve coefficient as established in specific regulations; • T = T-th calendar period in which the calculation of mandatory reserves occurs, (T=1, 2, 3,..., n); • T-1 = T-th calendar period in which the final daily credit balances are constituted, recorded in the incidence base accounts referred to in number 3, (T-1= -n, 1, 2, ..., n-1); • Dte (T – 1) = final daily credit balances recorded in the incidence base accounts referred to in number 3, reported on the first business day of the exigibility compliance period; and, • N = number of business days in period T-1.

11. For the purposes of this Instruction, business days are considered as days within the period, excluding Saturdays, Sundays and national holidays.

12. Credit rights may also be deducted from the exigibility in NC, calculated as per number 2.

13. The amount for the purpose of deducting mandatory reserves, referred to in the previous number, is determined based on the position of the penultimate day of the credit portfolio constitution period, granted by the Banking Financial Institution and recorded in the Supervision System for Financial Institutions of the Banco Nacional de Angola (SSIF).

14. The effective reserve value to be considered for NC exigibility compliance is equal to the sum of daily balances of Local Government and Municipal Administration accounts and the amount referred to in number 2, weighted according to coefficients established in specific regulations, minus the amounts established in numbers 12 and 13, according to the following formula: • ROdn = ∑[(GLTn) + ETn – DCTn(T-1)] In which: • ROdn = effective mandatory reserves in NC to be considered for exigibility compliance on day d; • GLTn = Biweekly Average of Local Government and Municipal Administration accounts in NC in T-1, weighted according to specific regulations; • ETn = exigibility in period T in NC, corresponding to the coefficient established in specific regulations on the incidence base, as referred to in number 9; • DCTn = value corresponding to credit rights, according to specific regulations; and, • d = business day of the compliance period (T).

15. The effective reserve value to be considered for FC exigibility compliance is equal to the sum of balances of Local Government and Municipal Administration accounts and the amount referred to in number 3, weighted according to coefficients established in specific regulations, according to the following formula: • ROde = ∑[GLde+ ETe] In which: • ROde = effective mandatory reserves in FC to be considered for exigibility compliance on day d; • GLde = daily balances of Local Government and Municipal Administration accounts in FC on day d, weighted according to specific regulations; • ETe = exigibility in period T in FC, corresponding to the coefficient established in specific regulations on the incidence base, as referred to in number 10; and, • d = business day of the compliance period (T).

16. The submission of data and information regarding the calculation of exigibility, as well as assets for FC compliance, must be in NC, at the primary market exchange rate (Bloomberg BGN average buy rate), of the previous day's close, and the same applies to FC mandatory reserve compliance.

17. Without prejudice to other measures that may be adopted, the Banco Nacional de Angola must apply a sanction equivalent to 1% (one percent) per month, above the highest prevailing interest rate for active operations in national currency, practiced by the Banco Nacional de Angola during the relevant period, as provided for in number 4 of Article 25 of Law No. 24/21, dated October 18 (BNA Law), on mandatory reserve shortfalls, both in national and foreign currency, according to specific regulations.

18. The collection of charges resulting from the penalties provided for in number 17 is carried out until the last business day of the following fortnight after occurrence, by debit in national currency Liquidity accounts held at the Banco Nacional de Angola, for both NC and FC non-compliances.

19. For FC non-compliances, equivalence is made through the exchange rate referred to in number 16.

20. If the amount of said penalties is not settled by the end of the stipulated period, the Banco Nacional de Angola proceeds with compulsory debit in the reserve account of the respective Bank.

21. Banking Financial Institutions must be informed by the Banco Nacional de Angola whenever sanctions provided for in number 17 apply.

22. Daily balances of the items comprising the incidence base defined in numbers 2 and 3, as well as Central Government, Local Governments and Municipal Administration accounts in NC and FC, must be transmitted daily to the Markets Department (DME) of the Banco Nacional de Angola via SSIF.

23. Procedures and Contingency: In case of SSIF unavailability, Banking Financial Institutions are obliged to alternatively submit data via email.

24. The data referred to in the previous number must comply with ADJUSTED CONTIF guidelines and be accurate, complete, reliable and verifiable.

25. Banking Financial Institutions are obliged to preserve and present, upon request by representatives of the Banking Supervision Department (DSB) of the Banco Nacional de Angola, documents that allow verifying information provided for the calculation of exigibility.

26. The period for constituting the incidence base and effective compliance is defined in specific regulations.

27. Doubts and omissions resulting from the interpretation of this Instruction are resolved by the Banco Nacional de Angola.

28. Non-compliance with this Instruction constitutes an offense punishable under Law No. 14/121, dated May 19 (General Regime of Financial Institutions Law).

29. Instruction No. 02/2021, dated February 10 and any other regulations contrary to this Instruction are revoked.

30. This Instruction enters into force the day following its publication. PUBLISH. Luanda, March 30, 2023. THE GOVERNOR JOSÉ DE LIMA MASSANO