Instruction No. 04-2018 of January 19, 2018

INSTRUCTION NO. 04/2018 of January 19 SUBJECT: INTERBANK MONEY MARKET - IIB

• Liquidity Lending Operations by Development Banks

It is the responsibility of the Bank of Angola, within the framework of the execution and monitoring of monetary policy, to maintain an adequate balance between the money supply and the growth of economic activity, thereby ensuring the preservation of the currency's purchasing power;

In accordance with the combined provisions of Article 3 of Law No. 16/10, of July 15 – Bank of Angola Law, and Article 70 of Law No. 12/15, of June 17 – Framework Law of Financial Institutions, and in the exercise of the competence conferred upon me by Article 51 of Law No. 16/10, of July 15;

I DETERMINE:

1. Development Banks, considering their scope and fundamental functions, may participate in the interbank money market to lend liquidity, with or without the provision of collateral by the borrowing Banking Institutions;

2. The liquidity lending operations referred to in paragraph 1 of this Instruction must have a term of no less than 180 (one hundred and eighty) days;

3. The interest rates applied in the operations provided for in this Instruction must not exceed those stipulated in the structure of the Luanda Interbank Offered Rate - LUIBOR.

CONTINUATION OF INSTRUCTION NO. 04/2018 Page 2 of 2

4. The liquidity lending operations referred to in paragraph 2 of this Instruction must be carried out through the Asset Market Management System - SIGMA, in accordance with its respective Manual of Standards and Procedures, and other applicable regulations of the Bank of Angola.

5. Development Banks must maintain prudential limits for liquidity lending and credit risk concentration, in accordance with applicable regulations;

6. Instruction No. 13/2015, of July 1, and all regulations of the Bank of Angola that contradict the provisions of this Instruction are hereby revoked.

7. This Instruction enters into force immediately.

PUBLISH.

Luanda, January 19, 2018.

THE GOVERNOR JOSÉ DE LIMA MASSANO