Notice No. 03/2020 of 28 February

PUBLISHED IN THE OFFICIAL GAZETTE, FIRST SERIES, NO. 22, OF 28 FEBRUARY NOTICE NO. 03/2020 SUBJECT: FINANCIAL SYSTEM

• Fixed Asset Limit of Financial Institutions

Whereas it is necessary to amend the regulatory framework regarding the fixed asset limit of Financial Institutions, provided for in paragraph h) of paragraph 1 of Article 90 of Law No. 12/15 of 17 June, the Financial Institutions Framework Act, aiming to align it with current market conditions; In accordance with the combined provisions of paragraphs d) and e) of Article 21 and Article 51, both of Law No. 16/10 of 15 July, the Act of the Banco Nacional de Angola.

I HEREBY DETERMINE: Article 1. (Subject Matter) This Notice aims to regulate the fixed asset limit of Financial Institutions under the supervision of the Banco Nacional de Angola.

Article 2. (Acquisition of Real Estate)

1. Financial Institutions may not acquire real estate that is not necessary for the pursuit of their corporate purpose, installation, and operation.
2. Without prejudice to the foregoing, Financial Institutions authorized to conduct credit activities may own real estate not intended for their own use, provided that the acquisition results from the repayment of their own credits, and such properties must be divested within 2 (two) years.

CONTINUATION OF NOTICE NO. 03/2020 Page 2 of 3 Article 3. (Fixed Assets)

1. The total resources invested in fixed assets, net of accumulated depreciation, amortization, and impairment losses, minus financial participations, may not exceed 50% (fifty percent) of the value of Regulatory Own Funds (ROF).
2. The limit established in this article must be observed by Financial Institutions, based on individual and consolidated financial statements.

Article 4. (Restrictions for Non-Compliance) Without prejudice to other applicable penalties, Financial Institutions or financial groups that exceed their respective fixed asset limit are subject to the following restrictions: a) Prohibition on opening new branches or subsidiaries; and b) Other restrictions, as determined by the Banco Nacional de Angola.

Article 5. (Transitional Regime) Financial Institutions must comply with the provisions of this Notice by 31 December 2020.

Article 6. (Penalties) Non-compliance with the provisions of this Notice constitutes an administrative offense provided for and punishable under Law No. 12/15 of 17 June, the Financial Institutions Framework Act.

CONTINUATION OF NOTICE NO. 03/2020 Page 3 of 3 Article 7. (Repealing Provision) All regulations contrary to this Notice are hereby repealed, notably Notice No. 07/2012 of 30 March.

Article 8. (Questions and Omissions) Questions and omissions arising from the interpretation and application of this Notice are resolved by the Banco Nacional de Angola.

Article 9. (Entry into Force) This Notice enters into force on the date of its publication. PUBLISH. Luanda, on 11 February 2020. THE GOVERNOR JOSÉ DE LIMA MASSANO