Guideline No. 05/2021 of February 26

GUIDELINE NO. 05/2021 of February 26 SUBJECT: FINANCIAL SYSTEM

• Operation of the Credit Risk Information Center

Given the need to promote improvements in reporting to the National Bank of Angola regarding financial, accounting, and risk information concerning effective and potential credit liabilities arising from credit operations undertaken by borrowers, guarantors, and sureties, as well as timely access to this information via the National Bank of Angola Consumer Portal; Pursuant to Article 81 of Law No. 12/15 of June 17 – Framework Law for Financial Institutions, and in exercise of the competence conferred by Article 51 of Law No. 16/10 of July 15 – National Bank of Angola Act, I HEREBY DETERMINE:

1. Subject and Scope 1.1. This Guideline establishes the procedures regarding the operation, reporting of financial, accounting, and risk information by Financial Institutions, and access to such information by borrowers, guarantors, and sureties in the Credit Risk Information Center hereinafter referred to as “CIRC”. 1.2. This Guideline applies to the Financial Institutions set forth in Article 2 of Notice No. 01/2021 of February 12, regarding the Credit Risk Information Center.

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2. Information to be Reported to the National Bank of Angola 2.1. Each Institution is obligated to report to the National Bank of Angola, concerning its activities and those of its foreign branches, the following: a) The information defined in Section 3 of this Guideline, regarding effective or potential liabilities of borrowers, as well as their respective guarantors and sureties, when applicable, with reference to the last day of each month; b) Information regarding issuers of checks presented without sufficient funds for the second time. 2.2. The value of liabilities incurred by borrowers, guarantors, and sureties must be reported to CIRC in the contracted currency. 2.3. Institutions are responsible for providing correct, timely, and reliable information to CIRC, and must therefore maintain an adequate internal control system aligned with the requirements set forth in Notice No. 02/2013 of April 19, regarding Internal Control Systems. 2.4. Institutions must, prior to monthly reporting of information to CIRC, ensure its reconciliation with the monthly information contained in balance sheets sent to the National Bank of Angola, as provided for in Guidelines No. 14/2019 and 15/2019, respectively.

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3. Characterization of Information to be Reported in Credit Operations 3.1. Institutions must report information regarding borrowers, guarantors, or sureties that enables their unequivocal identification, observing the following: Natural Persons / Legal Entities Full Name / Corporate Name Tax Identification Number (NIF) / Tax Identification Number (NIF) Date of Birth / Date of Incorporation Gender / Economic Activity Code (EAC); Nationality / Institutional Sector Level of Liability / Level of Liability

3.2. Institutions must also submit information regarding each operation referred to in the Tables contained in Annex I of this Guideline, which forms an integral part thereof, namely: a) Table 1 – Characterization of a Person; b) Table 2 – Contract/Operation; c) Table 3 – Guarantees, in case credit operations have associated real guarantees; d) Table 4 – Characterization of Operation Reporting; e) Table 5 – Non-Performing Loans (Impairments) Reporting; f) Table 6 – Check Reporting.

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4. Characterization of Information to be Reported on Checks Without Funds 4.1. Institutions must communicate information regarding customers who are issuers of checks presented without sufficient funds for the second time, enabling their unequivocal identification, observing the following: Full Name Tax Identification Number (NIF) Date of Birth Gender Nationality Level of Liability

4.2. Institutions must associate, for each check, the characterization elements defined in Table 6 of Annex I, which forms an integral part of this Guideline.

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5. Reporting of Information to the National Bank of Angola 5.1. Reporting and information requests sent by Institutions to the National Bank of Angola are conducted exclusively through CIRC. 5.2. In contingency situations, the National Bank of Angola may authorize Institutions to upload information at the National Bank of Angola premises in Luanda, via appropriate electronic media.

6. Deadlines for Reporting to the National Bank of Angola 6.1. CIRC-participating Institutions must report the updated credit portfolio, as stipulated in Directive No. 03/DSB/DRO/2020. 6.2. Files regarding operations and non-performing loans must be submitted to the National Bank of Angola by the 8th day of each month. 6.3. Files regarding borrowers, guarantors, or sureties must be submitted to the National Bank of Angola whenever it is necessary to update their data and/or make new records. 6.4. Information regarding checks returned for the second time due to lack of funds must be reported to the National Bank of Angola by 10:00 a.m. on the day following the return.

7. Information Provision by the National Bank of Angola 7.1. The National Bank of Angola provides each Institution monthly with information on the global balance of liabilities in the financial system for borrowers, guarantors, and sureties with liabilities at that Institution. 7.2. Without prejudice to the information provision in the preceding subsection, Institutions are granted the option of online consultation of potential customers, guarantors, and sureties information, provided they have received, as applicable, the following: a) A credit grant request or guarantee issuance; b) Confirmation by the guarantor or surety of their availability to assume that liability; c) Authorization to conduct such consultation.

7.3. Access to CIRC information via online consultation is available 24 hours a day, 7 days a week.

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8. Information Duty to Borrowers, Guarantors, and Other Sureties 8.1. Prior to the execution of a credit contract, issuance of a guarantee or suretyship, Institutions must inform interested parties of the need to consult CIRC regarding their credit position in the financial system. 8.2. Prior to the execution of the credit contract, Institutions must inform interested parties of their obligation to report information regarding credits, guarantees, and suretyships to CIRC on a monthly basis. 8.3. The provision of information referred to in the preceding subsection may be carried out through a specific clause in the credit contract itself or an attached document, with the Institution ensuring evidence of its communication. 8.4. If the credit or guarantee request is denied based on information obtained through CIRC, Institutions must notify interested parties in writing, informing them of the following: a) The CIRC information that influenced the decision; b) The right to obtain a copy of the information provided by CIRC regarding them; and c) The right to contest such information, as stipulated in Section 10 of this Guideline.

8.5. Pursuant to Section 3 of Article 8 of Notice No. 01/2021 of February 12, Institutions must send monthly the updated credit position regarding credit commitments undertaken by borrowers. 8.6. Without prejudice to Notice No. 01/2021 of February 12, and whenever non-compliance with credits undertaken by borrowers occurs, Institutions must send the updated credit position to guarantors or other sureties who have accessory obligations regarding the principal debtor. 8.7. The information required in subsections 8.5 and 8.6 must be sent or provided via the contractually agreed support and communication medium, or, in the absence of a contractual provision, by letter, electronic device, email, and in person. 8.8. If inaccuracies are found in the information registered with CIRC regarding them, borrowers, guarantors, and sureties must request its rectification in writing to the Institution responsible for the incorrect record.

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9. Claims Processing 9.1. In cases of claims due to inaccuracies detected by borrowers, guarantors, and sureties, the Institution holding the incorrect information must, within 2 (two) business days, notify CIRC of the fact and inform that the situation is under review. 9.2. Upon receipt of the notification referred to in the preceding subsection, CIRC must, within 5 (five) business days, attach a note to the credit report, communicating that said information is under review. 9.3. The note referred to in the preceding subsection must remain with CIRC until its resolution date. 9.4. The Institution whose information was incorrectly reported must, within 10 (ten) business days from the receipt of the claim, carry out all necessary due diligence and issue a communication to both the claimant and CIRC with the investigation results, clearly indicating whether or not correction of the contested information is needed. 9.5. If a correction is warranted, it must be duly detailed, with retroactive effect, if applicable.

9.6. If no justification is provided within the period referred to in subsection 9.4, or if there is no agreement between the claimant and the Institution, the latter must communicate the facts in writing to CIRC requesting its intervention for claim resolution.

10. Rectification of Information "Held by CIRC" Whenever an Institution verifies that there has been an omission or improper communication of any liability, past or present, it is obligated to proceed with its rectification, sending to CIRC for this purpose the monthly information of previous months during which the error existed.

11. History and Archiving 11.1. The monthly data on credit liabilities of borrowers, guarantors, and sureties communicated under this Guideline must be archived by Institutions and CIRC for a minimum period of 10 (ten) years. 11.2. Proof of the existence of credit grant requests must be retained by Institutions, in digital format, for a minimum period of 10 (ten) years.

12. Responsible Parties for Communication to CIRC 12.1. Institutions must designate employees responsible for interaction with the National Bank of Angola, regarding information provision under this Guideline. 12.2. Any changes regarding designated responsible parties must be immediately communicated to the National Bank of Angola. 12.3. The National Bank of Angola ensures Institutions with information regarding their interlocutors concerning the provision of information to CIRC.

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13. Sanctions Non-compliance with this Guideline constitutes an offense punishable under Law No. 12/15 of June 17, Framework Law for Financial Institutions.

14. Repeal Guideline No. 13/20 of July 17, regarding CIRC Operating Rules, is hereby repealed.

15. Doubts and Omissions Doubts and omissions resulting from the interpretation and application of this Guideline are resolved by the National Bank of Angola.

16. Transitional Provision Institutions must comply with this Guideline within 30 (thirty) days of its publication, during which period the current regulation remains in force.

17. Entry into Force This Guideline enters into force on the day following its publication.

PUBLISH. Luanda, February 26, 2021. THE GOVERNOR JOSÉ DE LIMA MASSANO

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Table 1 – Characterization of Person Reporting Type of Person / Gender Tax Identification Number (NIF) / Profession Name / Corporate Name / Nationality Date of Birth / Date of Incorporation / Politically Exposed Person (PEP) Country / Institutional Sector Economic Activity Code – EAC REV.2 / SME Classification (MPME) Net Revenues / Total Assets High-Risk Customer / Parent Company Tax Identification Number (NIF) Personal Identification Number / Economic Group Document Type / Country Parent Company Description of Document

Table 2 – Characterization of Contract Reporting Level of Liability / Project Province Unique Internal Credit Code / Project Municipality Order Number for Credit Grant Request / Project Macro Sector Financial Instrument / Total Cost (%) Credit Currency / Subsidy / Protocol Date of Contract Execution / Number of Expatriate Workers Disbursement Date / Number of National Workers Contracted Amount / Date of Opinion Issuance Credit Line Conditional Indicator / Original Credit Code Original Interest Rate / Type of Contractual Alteration Interest Calculation Base / Date of Renegotiation Country of Credit Grant / Type of Negotiation Province of Credit Grant / Unique Internal Code of Restructured Credit Municipality of Credit Grant / Situation at Restructuring Date Branch of Credit Grant / Second Restructuring Spread / Liquidation of Matured Amounts Annual Effective Interest Rate (TAEG) / Guarantee Reinforcement Annual Effective Rate (TAE) / Count of Restructurings Eligible Asset / Global Project Value Description of Project / Commissions (%)

Table 3 – Characterization of Guarantee Reporting Guarantee Identification Code / Value of Guarantee Allocated to Contract Effective Interest Rate / Country of Guarantee Amortization Type / Province of Guarantee Capital Payment Frequency / Municipality of Guarantee Interest Payment Frequency / Guarantor Date of First Capital Payment / Guarantee Execution Indicator Date of First Interest Payment / Final Maturity Date of Guarantee Code of Restructured Credit / Mortgage Number Type of Interest Rates / Value of Real Estate Collateral Original Maturity Date / Financial Collateral Value Related Party / Third-Party Guarantee Value Credit Purpose / Counterparty Guarantee Code Guarantee Identification Code Issued by Guarantee Fund / Counterparty Guarantee NIF Currency / Assigned Haircut Initial Value of Guarantee / Guarantee Execution Amount Date of Original Guarantee Assessment / Sale Date Type of Guarantee Assessment / Net Sale Amount Appraiser Identification / Recovery Cost Value of Last Assessment / Sale Cost Date of Last Assessment / Estimated Time to Recovery Type of Guarantee / Estimated Time to Sale Mortgage Value

Table 4 – Characterization of Operation Reporting Operation Start Date / Quotation Operation End Date / Disbursement Date Risk Level / Disbursed Amount Potential Capital / Impairment Reporting Segment Effective and Regular Capital / Credit Operation Impairment Segment Description Effective and Regular Interest / Classification of Extrapatrimonial Elements Matured Capital / Impairment Situation Matured Interest / Time in Impairment Situation Penalty Interest / Stage of Credit Operation Capital Amount Written Off to Assets / Collective Impairment Value Interest Amount Written Off to Assets / Individual Impairment Value Capital Amount Forgiven / Final Impairment Interest Amount Forgiven / Identification of Substitution Occurrence for Impairment Value Days in Arrears / Type of Impairment Analysis Current Interest Rate / 12-Month Probability of Default (PD) Capital Amortization Rate / PD until Maturity Residual Value / Behavioral Maturity Remaining Capital Grace Period / Loss Given Default (LGD) Remaining Interest Grace Period / Credit Conversion Factor (CCF) Capital Increase / Exposure at Risk Monthly Installment Value / Loan-to-Value Ratio (LTV) Repayment Plan / Internal Rating/Scoring Original Disbursed Amount / Internal Rating/Scoring Current Matured Capital Amount with Litigation / Macroeconomic Scenario ID Matured Interest Amount with Litigation / Macroeconomic Scenario Description Written Off Capital Amount with Litigation / Weight of Macroeconomic Scenario Written Off Interest Amount with Litigation / Average PD Liquidated Capital Amount / Average LGD Liquidated Interest Amount / Average Loan-to-Value Ratio (LTV) Indexation

Table 5 – Non-Performing Loans (Impairments) Reporting Credit Operation Impairment Segment / Behavioral Maturity Impairment Segment Description / Loss Given Default (LGD) Classification of Extrapatrimonial Elements / Credit Conversion Factor (CCF) Impairment Situation / Exposure at Risk Time in Impairment Situation / Loan-to-Value Ratio (LTV) Stage of Credit Operation / Internal Rating/Scoring Original Collective Impairment Value / Internal Rating/Scoring Current Individual Impairment Value / Macroeconomic Scenario ID Final Impairment / Macroeconomic Scenario Description Identification of Substitution Occurrence for Impairment Value / Weight of Macroeconomic Scenario Type of Impairment Analysis / Average PD 12-Month Probability of Default (PD) / Average LGD PD until Maturity / Average Loan-to-Value Ratio (LTV)

Table 6 – Characterization of Check Reporting Optical Line / Province Validity Deadline Date / Municipality Value / Return Date Branch / Reason for Return

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