Regulatory Alerts1992-06-11
Instruction No. 2/92
The Governor of the Banco Nacional de Angola issued Instruction No. 2/92 to halt the constant extensions of validity for unconfirmed exporter's credit letters of credit, which were disrupting commitment controls and exchange liability management. The directive immediately prohibits any further validity extensions and mandates that the commercial divisions of the Banco Nacional de Angola, Banco de Poupança e Crédito, and Banco de Comércio e Indústria instruct their correspondents to cancel affected letters of credit as of their transaction dates. Any operations requiring special treatment must be submitted to the Bank's Board of Directors for individual analysis and approval, with the instruction taking effect upon publication.
INSTRUCTION NO. 2/92 Dated June 12, 1992
Whereas it has been observed that the constant extensions of the validity of Exporter's Letters of Credit are causing disruptions in the control of potentially assumed commitments and consequently in the management of the actual exchange liabilities resulting from these operations:
I HEREBY DETERMINE:
1- From this date, extensions to the validity of "Unconfirmed – Exporter's Credit" Letters of Credit are not authorized, and the Commercial Area of the Banco Nacional de Angola, the Banco de Poupança e Crédito, and the Banco de Comércio e Indústria must also instruct their correspondents immediately to cancel the aforementioned letters of credit as of the date of their transactions.
2- The provisions of the preceding paragraph do not apply to operations that may warrant special treatment, which must for this purpose be submitted to the Bank's Board of Directors for analysis and decision.
3- This Instruction takes effect immediately upon its publication.
PUBLISH
Luanda, June 12, 1992
THE GOVERNOR
SEBASTIÃO BASTOS LAVRADOR