Regulatory Alerts2009-12-31
Regulation (NAP) – Intervention in Financial Institutions
The Central Bank of São Tomé and Príncipe issued this Permanent Application Regulation (NAP) to establish the legal framework, grounds, and procedures for intervening in financially insolvent or potentially insolvent authorized institutions. It mandates the appointment of a receiver with broad management powers to restore normal operations, protect assets, and manage liquidity support while suspending existing administrators' mandates. The regulation outlines strict notification, reporting, and recovery program requirements, culminating in either the institution's financial restoration under statutory control or its formal bankruptcy and liquidation.
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