Instruction No. 11/2018 on Interbank Money Market Liquidity Lending by Development Banks

INSTRUCTION NO. 11/2018 of September 11 SUBJECT: INTERBANK MONEY MARKET - IMM

• Liquidity Lending Operations by Development Banks The National Bank of Angola is responsible, within the scope of implementing and monitoring monetary policy, for maintaining an adequate balance between money supply and economic activity growth, thereby ensuring the preservation of the currency's purchasing power; Pursuant to the combined provisions of Article 3 of Law No. 16/10, dated July 15 – National Bank of Angola Law, and Article 70 of Law No. 12/15, dated June 17 – Framework Law for Financial Institutions, and in the exercise of the competence conferred upon me by Article 51 of Law No. 16/10, dated 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 collateral provided by the borrowing financial institutions.
2. The liquidity lending operations referred to in paragraph 1 of this Instruction must have a minimum maturity of 90 (ninety) days.
3. The interest rates applied to the operations covered by this Instruction must not exceed those provided in the Luanda Interbank Offered Rate (LUIBOR) structure.

CONTINUATION OF INSTRUCTION NO. 11/2018 Page 2 of 2 4. The liquidity lending operations referred to in paragraph 2 of this Instruction must be executed through the Asset Market Management System (SIGMA), in accordance with its Manual of Standards and Procedures, and other applicable regulations of the National Bank of Angola. 5. Development Banks must maintain prudential limits for liquidity lending and credit risk concentration, in accordance with applicable regulations; 6. Non-compliance with the provisions established in this Instruction constitutes an offense punishable under Law No. 12/15, dated June 17 – Framework Law for Financial Institutions. 7. Doubts and omissions arising from the interpretation and application of this Instruction are resolved by the National Bank of Angola. 8. Instruction No. 04/18, dated January 19, and any regulations contrary to the provisions of this Instruction are hereby revoked. 9. This Instruction enters into force on the date of its publication. PUBLISHED. Luanda, September 11, 2018.

THE GOVERNOR JOSÉ DE LIMA MASSANO