Regulatory Alerts2020-05-11
Instruction No. 09/2020 of May 11 – Monetary Policy: Treasury Bond Purchase Line Established by Instruction No. 06/2020 of April 6
The Bank of Angola issued Instruction No. 09/2020 to grant large productive-sector companies access to a Kz 100 billion Treasury Bond Purchase Line established by Instruction No. 06/2020, enabling them to discount held Non-Adjustable Treasury Bonds (NTBs) for short-term liquidity. Eligible companies must prioritize using the sale proceeds to settle matured taxes, social security contributions, bank loans, and national supplier debts, with transactions processed sequentially at commercial banks until the line is exhausted or July 6, 2020. The instruction mandates a maximum Kz 5 billion per company, an 18% minimum yield to maturity, a 0.1% financial intermediary commission, and strict operational timelines for bank verification, BODIVA platform registration, and D+1 physical/financial settlement.