Regulation (NAP) - Liquidity Lending Facility-FCL

Banco Central de S.T.P	N A P <br> NORMA DE APLICAÇÃO PERMANENTE	CÓDIGO
		RD 09
PROPONENTE (S)	ENTRADA EM VIGOR	DATA DE EMISSÃO
DMGL	06/05/2013	02/05/2013

Subject: Liquidity Lending Facility

Considering the convenience of reformulating the liquidity lending instrument to allow commercial banks to more efficiently manage their short-term liquidity without affecting the monetary policy defined by the Central Bank, as well as creating favorable conditions for the development of the interbank market and the national financial system;

The Central Bank of São Tomé and Príncipe determines, taking into account the provisions of Articles 8(d), 32(a) and (d), 41(c) and 43(b) of its Organic Law:

Article 1 Definition The Liquidity Lending Facility (LLF) is a credit line available to deposit-taking institutions, at their own initiative, with the aim of improving short-term treasury management, signaling monetary policy orientation, and placing an upper limit on market interest rates.

Article 2 General Provisions

1. The LLF aims to provide liquidity for a maximum period of 5 days;
2. The lending facility shall be denominated in Dobras;
3. The use of this facility is based on the submission of collateral as defined in this NAP;
4. The maximum credit value available through this facility shall never exceed 80% of the requesting Bank's own funds.

Vistos	Dados de Revogação:

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Banco Central de S.T.P	N A P <br> NORMA DE APLICAÇÃO PERMANENTE	CÓDIGO
		RD 09
PROPONENTE (S)	ENTRADA EM VIGOR	DATA DE EMISSÃO
DMGL	06/05/2013	02/05/2013

Article 3 Interest Rate Fixation

1. An interest rate of 14% is fixed for the liquidity lending facility;
2. Banks must not use this facility more than 5 days per month;
3. The rate applied to this facility shall be a simple interest rate according to the Effective Number of Days/360 convention;
4. Interest must be paid on the loan's maturity date.

Article 4 Amendment of the LLF Interest Rate The BCSTP may amend the interest rate at any time, in accordance with its monetary policy orientation.

Article 5 Suspension Access to this facility is permitted only in accordance with the BCSTP's general monetary policy objectives and considerations, and the Institution may amend its conditions or suspend it at any time.

Article 6 Minimum Amount The minimum amount for each operation under the LLF shall be 500 million Dobras.

Article 7 Collateral/Guarantees

1. The collateral referred to in paragraph 3 of Article 2 may be expressed in one or a combination of the following instruments:

Vistos	Dados de Revogação:

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Banco Central de S.T.P	N A P <br> NORMA DE APLICAÇÃO PERMANENTE	CÓDIGO
		RD 09
PROPONENTE (S)	ENTRADA EM VIGOR	DATA DE EMISSÃO
DMGL	06/05/2013	02/05/2013

a) In foreign currency deposit accounts of the requesting Institutions held with the BCSTP; b) In Treasury Bills (TBs); c) In Central Bank Deposit Certificates (DCs); d) In exceptional cases, the Central Bank may accept bank guarantees; 2. The deposits referred to in items a), b), and c) are considered as collateral if they exceed the RMC (Reserve Maintenance Requirement) required for the remainder of the maintenance period; 3. The amount considered as collateral shall be blocked in an account at the Central Bank opened for this purpose; 4. The valuation of the collateral is determined with reference to the BCSTP's purchase exchange rate; 5. The value assigned to the collateral shall represent 125% of the requested credit amount.

Article 8 Settlement If the maturity of an LLF coincides with a Saturday, Sunday, or holiday, the repayment settlement date shall be the next business day, with interest calculated up to that day.

Article 9 Access Conditions

1. Commercial Banks must request access to the LLF by completing the form attached to this NAP (Annex I), indicating the following information: a) Date of operation b) Name of the Commercial Bank c) Signature of authorized persons d) Amount e) Term/Maturity f) Collateral/Guarantee

Vistos	Dados de Revogação:

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Banco Central de S.T.P	N A P <br> NORMA DE APLICAÇÃO PERMANENTE	CÓDIGO
		RD 09
PROPONENTE (S)	ENTRADA EM VIGOR	DATA DE EMISSÃO
DMGL	06/05/2013	02/05/2013

g) Authorization for automatic debit of the respective deposit account at the BCSTP on the LLF maturity date. h) Authorization for automatic debit of the collateral account in case of failure to meet the term stipulated in the LLF contract. 2. The request must be submitted by 12:00 hours on the day of operation, accompanied by a contract duly signed by authorized persons of the requesting Commercial Bank, with legible signature and corresponding title, according to a form attached to this NAP (Annex II); 3. The request must be addressed to the Market and Liquidity Management Directorate of the BCSTP, responsible for verifying that all requirements stipulated in paragraph 1 of this article are met; 4. Failure to comply with the above conditions constitutes grounds for rejection of the request.

Article 10 Settlement of Funds

1. The BCSTP credits the Commercial Bank's current account at the Central Bank in Dobras, once the aspects mentioned in Article 9 are fulfilled. Simultaneously, it informs the Commercial Bank of the credit amount assigned through the LLF;
2. During the facility's maturity period, the BCSTP automatically debits the Commercial Bank's current account and its corresponding interest, subsequently notifying the Commercial Bank of the executed operation.

Article 11 Penalties/Sanctions

1. In case of non-compliance by the Commercial Bank due to lack or insufficiency of funds, the BCSTP automatically executes the collateral by debiting the outstanding capital and interest up to the date from the Commercial Bank's account at the Central Bank. It subsequently notifies the Bank of the operation;
2. An additional interest of 5% on the requested credit is applied as a penalty for late payment.

Vistos	Dados de Revogação:

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Banco Central de S.T.P	N A P <br> NORMA DE APLICAÇÃO PERMANENTE	CÓDIGO
		RD 09
PROPONENTE (S)	ENTRADA EM VIGOR	DATA DE EMISSÃO
DMGL	06/05/2013	02/05/2013

Article 12 Publication The BCSTP will publish daily on its website the amount of operations carried out under this facility.

Article 13 Revocation NAP No. 22/06 of 14.12.06, Liquidity Lending Facility, is hereby revoked.

Article 14 Entry into Force This NAP shall enter into force as of May 6, 2013.

Central Bank of São Tomé and Príncipe, issued in São Tomé, May 2, 2013.

Vistos	Dados de Revogação:

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Banco Central de S.T.P	N A P <br> NORMA DE APLICAÇÃO PERMANENTE	CÓDIGO
		RD 09
PROPONENTE (S)	ENTRADA EM VIGOR	DATA DE EMISSÃO
DMGL	06/05/2013	02/05/2013

ANNEX I CREDIT REQUEST FORM UNDER THE LIQUIDITY LENDING FACILITY

Mr. Director of Market and Liquidity Management of the BCSTP

Your Excellency

The ________________________________________________________________ with headquarters at ________________________________________________________________ requests from the Central Bank of São Tomé and Príncipe a loan of ________________________________________________________________ million Dobras, with a term of five days, to address temporary liquidity difficulties. For this purpose, we present as collateral ________________________________________________________________ valued at ________________________________________________________________.

Accordingly, we authorize the automatic debit of our account upon credit maturity. In case of non-compliance, we authorize the execution of the collateral.

With full powers of bank representation for this purpose, the representative(s):

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São Tomé and Príncipe _________________________________

Vistos	Dados de Revogação:

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Banco Central de S.T.P	N A P <br> NORMA DE APLICAÇÃO PERMANENTE	CÓDIGO
		RD 09
PROPONENTE (S)	ENTRADA EM VIGOR	DATA DE EMISSÃO
DMGL	06/05/2013	02/05/2013

ANNEX II

LIQUIDITY LOAN CONTRACT WITH PLEDGE GUARANTEE

On ____ day of ________________ of the year ____, at the Central Bank of São Tomé and Príncipe, appeared as first grantor His/Her Excellency __________________________________________________________________, Director of the General Operations Department of the Central Bank of São Tomé and Príncipe, granting in name and representation thereof, and as second grantor, His/Her Excellency , (title), representing the Bank ________________________________________________________________.

First: In accordance with Article 41 of its Organic Law, the Central Bank of São Tomé and Príncipe grants to the Bank ________________________________________________________________ a loan in the amount of ________________________________________________________________ Dobras (in words), intended to strengthen this Institution's treasury funds.

Second: This loan accrues interest at the fixed rate of 14%.

Third: In case of non-compliance, the interest rate to be charged, from the maturity of the LLF until its actual payment date, is increased by 5%.

Fourth: The Bank undertakes to settle the aforementioned loan on ________________________________________________________________. Fifth: During the loan term, interest will be paid daily by automatic debit in the Bank's current account at the Central Bank of São Tomé and Príncipe.

Vistos	Dados de Revogação:

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Banco Central de S.T.P	N A P <br> NORMA DE APLICAÇÃO PERMANENTE	CÓDIGO
		RD 09
PROPONENTE (S)	ENTRADA EM VIGOR	DATA DE EMISSÃO
DMGL	06/05/2013	02/05/2013

Sixth: The aforementioned loan is secured by the following guarantees: ________________________________________________________________

For the first grantor ________________________________________________________________

For the second grantor ________________________________________________________________

Central Bank of São Tomé and Príncipe, issued in São Tomé, ____ of ________________ of ____. |