Regulatory Alerts2016-03-08
Notice No. 3/2013 on Information Regarding Interest Rates and Costs of Credit Operations
The Bank of Cape Verde issued Notice No. 3/2013 to mandate credit institutions and parafinancial entities to provide standardized, comparable information on interest rates and total costs of credit operations. The Notice establishes precise definitions for key financial terms, specifies the calculation methodology and exclusions for the Effective Annual Rate of Total Charges (EARP), and mandates comprehensive disclosure in contracts, advertising, and ongoing client statements. It further requires institutions to deliver this information via durable mediums, ensures compliance through evidentiary burdens, and sets a 360-day calculation base with mandatory rounding to the thousandth.
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