Regulatory Alerts2021-01-05
Directive No. 01/DRO/2021, dated January 6
The Department of Regulation and Organization of the Financial System (DRO) issued Directive No. 01/DRO/2021 to mandate Banking Financial Institutions in Angola to record additional state credit impairments, arising from the country's rating downgrade and COVID-19 macroeconomic pressures, in national currency while adjusting for Kwanza exchange rate fluctuations. The directive requires that these nationally denominated impairments permanently reflect the equivalent value of foreign currency exposures, while pre-existing foreign currency impairments remain unchanged. It applies to all state credit exposures from Treasury Bonds, loans, and other liabilities, takes immediate effect, and remains valid until the National Bank of Angola issues contrary instructions.