Directive No. 12/2023, of November 28

GOVERNOR DIRECTIVE NO. 12/2023 ORIGIN: MARKETS DEPARTMENT (DME) DATE 28/11/2023 SUBJECT: FINANCIAL SYSTEM

• Requirements for the Calculation and Compliance of Mandatory Reserves

Given the need to update the requirements for determining and complying with Mandatory Reserves in line with the current macroeconomic framework, aiming at the efficiency of monetary policy instruments, as per Instruction No. 04/2023 of March 30 regarding mandatory reserves, This Directive serves to establish the following:

1. The period for establishing the base for calculating Mandatory Reserves in national currency (NC) and foreign currency (FC) is biweekly.
2. The Mandatory Reserve coefficient in NC to be applied to the balances of the biweekly average of the items comprising the base, as defined in paragraph 2 of Instruction No. 04/2023 of March 30 regarding Mandatory Reserves, is 18% (eighteen percent).
3. The Mandatory Reserve coefficient to be applied to the balances of the biweekly average of accounts for Local Governments and Municipal Administrations - NC, is 18% (eighteen percent).
4. Daily balances of the mandatory reserve account in NC, opened at the Banco Nacional de Angola (BNA) under the name of each Banking Financial Institution, are eligible for compliance with Mandatory Reserves in NC.
5. Daily balance release by Banking Financial Institutions is permitted up to a limit of 20% (twenty percent) of the effective requirement.

CONTINUATION OF DIRECTIVE NO. 12/2023 PAGE 2 of 3 6. Without prejudice to paragraph 5, daily balances below the 20% (twenty percent) limit of the effective requirement and whenever the average balance for the period in the mandatory reserve account is lower than the effective requirement shall be considered non-compliance with mandatory reserves. 7. Daily balances of the guarantee accounts for the Credit Transfer Subsystem (STC), Check Clearing Subsystem (SCC), Direct Debits Subsystem (SDD), and Multicaixa Subsystem (MCX) are not eligible for compliance with Mandatory Reserves in NC. 8. The Mandatory Reserve coefficient in FC, to be applied to the balances of the biweekly average of the items comprising the base, as defined in paragraph 3 of Instruction No. 04/2023 of March 30 regarding Mandatory Reserves, is set at 22% (twenty-two percent). 9. The coefficients of Mandatory Reserves to be applied to the daily balances of accounts for the Central Government - FC, Local Governments and Municipal Administrations - FC, is 100% (one hundred percent). 10. Daily balances of the FC deposit account opened at the Banco Nacional de Angola under the name of each Banking Financial Institution, net of 100% (one hundred percent) corresponding to deposits in the name of the Central Government maintained in the books of the Financial Institution, are eligible for compliance with Mandatory Reserves in FC;

CONTINUATION OF DIRECTIVE NO. 12/2023 PAGE 3 of 3 11. The Credit Rights item comprises: a) 80% (eighty percent) of the Assets representing the value of disbursements for NC loans in regular status, pertaining to projects in the agriculture, livestock, forestry, and fisheries sectors, granted up to April 14, 2021, provided they have a residual maturity of equal to or greater than 24 (twenty-four) months; b) Loans defined in accordance with Article 8 of Notice No. 10/2022 of April 6 regarding Credit Granting to the Real Sector of the Economy, regardless of residual maturity; c) Loans defined in accordance with Article 11 of Notice No. 09/2023 of August 3 regarding Housing Credit Granting, regardless of residual maturity; d) The principal amount of the effective credits to be deducted from mandatory reserves, referred to in the preceding sub-items, shall only be carried out after validation by the Organizational Unit of the Banco Nacional de Angola responsible for credit monitoring under the aforementioned regulations; e) For the purpose of total or partial deduction of credit rights, Banking Financial Institutions must submit information to the Organizational Unit of the Banco Nacional de Angola responsible for credit monitoring under the aforementioned regulations, indicating the credits to be deducted from Mandatory Reserves. 12. For the purpose of establishing the base for calculating Mandatory Reserves, Banks must consider deposits from November 27 to December 8, 2023. 13. The effective compliance with the requirement referred to in the preceding paragraph shall take effect starting from December 11, 2023. 14. Doubts and omissions arising from the interpretation of this Directive are resolved by the Banco Nacional de Angola. 15. Directive No. 06/DME/2023 of March 30 is hereby revoked, as well as all regulations contrary to the provisions of this Directive. 16. This Directive enters into force on November 27, 2023. Luanda, November 28, 2023. MARKETS DEPARTMENT Tânia Patrícia de Oliveira Mendes Lopes -Director-