Regulatory Alerts2013-05-02
Regulation (NAP) - Liquidity Lending Facility-FCL
The Central Bank of São Tomé and Príncipe issued this Permanent Application Regulation to establish a Liquidity Lending Facility (LLF) that allows commercial banks to access short-term credit of up to 5 days, denominated in Dobras and secured by specified collateral. The facility sets a fixed interest rate of 14%, caps credit exposure at 80% of the requesting bank's own funds, and mandates a minimum transaction amount of 500 million Dobras. It outlines strict access conditions, automatic settlement and penalty mechanisms for late payment, and grants the Central Bank the authority to amend rates or suspend access in line with monetary policy objectives.
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