Regulatory Alerts2024-01-26
Circular Letter No. 01/2024
The National Bank of Angola (BNA) issued Circular Letter No. 01/2024 to direct banking financial institutions toward granting operational credit for the 2024/2025 Agricultural Campaign, defining eligible annual and perennial crops alongside specific production factors. The directive mandates that credit costs and mandatory reserve deductions comply with Notice No. 10/22, thereby supporting family and corporate agro-pastoral enterprises with essential treasury funding to sustain domestic production. Financial institutions must route interpretive queries and reporting omissions to the BNA’s Credit Monitoring Office via designated email channels.
CIRCULAR LETTER NO. 01/2024 SUBJECT: FINANCIAL SYSTEM
- Notice No. 10/22, dated April 6, regarding the Granting of Credit to the Real Sector of the Economy – Support for the Agricultural Campaign The National Bank of Angola (BNA), aiming to align the financial sector with the objective of economic diversification, issued Notice No. 10/22, dated April 6, to encourage the granting of credit to the real sector of the economy. Accordingly, within the framework of support for the real sector of the economy, regarding credit applications related to the 2024/2025 Agricultural Campaign, valid until May 31, 2025, we hereby inform all Banking Financial Institutions of the following:
- Campaign Agricultural Credit aims to finance the operational costs of said agricultural campaign, namely, the production factors of the Agricultural Campaign for annual crops, perennial crops, and livestock operations of family and corporate agricultural enterprises, including treasury credit essential for the sector, aiming to enhance and ensure the continuity of production from existing agro-pastoral operations operating in the country.
- The following are understood as: a. Annual Crops: • Cereals (maize, rice, wheat, massambala, massango); • Legumes/oilseeds (beans, soybeans, peanuts, sunflower); • Roots and tubers (cassava, sweet potato, Irish potato, yam); • Various vegetables. b. Perennial Crops: • Fruit trees. c. Production Factors:
CONTINUATION OF CIRCULAR LETTER NO. 01/2024 page 2 of 2 • Seeds; • Fertilizers/adobes and agricultural correctives; • Pesticides (insecticides, herbicides, and fungicides); • Mechanization services for land preparation, sowing, field maintenance, harvesting, storage, and marketing; • Wages for casual labor; • Day-old chicks, ducks, swine, cattle, goats, and sheep for fattening; • Feed; • Mineral salt; • Vaccines and medications. 3. Regarding the total cost of credit and the deduction from mandatory reserves, the conditions established in paragraph a) of No. 2 of Article 5 and paragraph a) of No. 1 of Article 8 of Notice No. 10/22, dated April 6, apply respectively. 4. Doubts and omissions resulting from the interpretation of this Circular Letter must be submitted to the Credit Monitoring Office of the National Bank of Angola, for appropriate clarification or support, and for this purpose, the following email may be used: GAC_GERAL@bna.ao. Luanda, January 25, 2024. CREDIT MONITORING OFFICE
Veloso Ndunguini Filipe Pedro -Director-