Directive No. 05/DMA-2021 of May 5

GOVERNOR DIRECTIVE NO. 05/DMA/2021 ORIGIN: Assets Market Department (DMA) DATE 05/05/2021 SUBJECT: FINANCIAL SYSTEM

• Requirements for the Calculation and Compliance of Mandatory Reserves

Whereas it is necessary to update the requirements for determining and complying with Mandatory Reserves in line with the current macroeconomic stability framework, aiming at monetary policy instrument efficiency, pursuant to Instruction No. 02/2021 of February 10.

This Directive establishes the following:

1. The period for establishing the incidence base for calculating Mandatory Reserves in national currency (NC) and foreign currency (FC) is weekly.
2. The Mandatory Reserve coefficient in NC to be applied to the weekly average balances of the items comprising the incidence base, as defined in paragraph 2 of Instruction No. 02/2021 of February 10 on Mandatory Reserves, is 22% (twenty-two percent).
3. The Mandatory Reserve coefficients to be applied to the weekly average balances of Central Government accounts – NC, and Local Governments and Municipal Administrations – NC, are 22% (twenty-two percent), respectively.
4. The daily balances of the mandatory reserve account in NC, opened at the National Bank of Angola (BNA) in the name of each Banking Financial Institution, are eligible for compliance with Mandatory Reserves in NC.
5. The 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.
6. The Mandatory Reserve coefficient in FC to be applied to the weekly average balances of the items comprising the incidence base, as defined in paragraph 3 of Instruction No. 02/2021 of February 10 on Mandatory Reserves, is 17% (seventeen percent).
7. The Mandatory Reserve coefficients to be applied to the daily balances of Central Government – FC, and Local Governments and Municipal Administrations – FC accounts are 100% (one hundred percent).
8. The following assets are eligible for compliance with Mandatory Reserves in FC: a) The balance corresponding to the daily closing of mandatory reserve accounts in national currency, opened at the National Bank of Angola, in the name of each Banking Financial Institution, amounting to 2% (two percent) of the average incidence base for private FC; b) Foreign currency Treasury Bonds belonging to the portfolio registered in SIGMA, issued from 2015 onwards, up to 80% (eighty percent) of the effective liability, excluding the 2% (two percent) referred to in the previous sub-paragraph; and c) The balance of the foreign currency deposit account, opened at the National Bank of Angola, in the name of each Banking Financial Institution.
9. The Credit Rights item comprises: a) 80% (eighty percent) of the Assets representing the value of disbursements for regular NC loans related 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) 100% (one hundred percent) of loans, as defined in accordance with Article 6 of Notice No. 10/2020 of April 3 on Credit Concession to the Real Sector of the Economy, regardless of residual maturity; and c) The effective deduction of loans from mandatory reserves, referred to in the previous sub-paragraphs, must only be carried out after validation by the Credit Monitoring Office (GAC).
10. Directive No. 02/DMA/2021 of February 10 is revoked, along with any regulation contrary to this Directive.
11. For the purpose of establishing the incidence base for calculating Mandatory Reserves, Banking Financial Institutions must consider deposits made from April 26 to 30, 2021.
12. The effective compliance with the liability referred to in the preceding paragraph must occur from May 10, 2021.
13. Doubts and omissions resulting from the interpretation of this Directive are resolved by the National Bank of Angola.
14. This Directive enters into force immediately.

Luanda, May 5, 2021. DEPARTAMENTO DE MERCADOS DE ACTIVOS Isabel Maria do Rosário Dias -Deputy Director-

CONTINUATION OF DIRECTIVE NO. 05/DMA/2021 4 of 5 ANNEX I

CONTINUATION OF DIRECTIVE NO. 05/DMA/2021 5 of 5 ANNEX II

• WEEKLY LIABILITY ON CENTRAL GOVERNMENT, LOCAL GOVERNMENTS (Provinces) AND MUNICIPAL ADMINISTRATIONS IN NATIONAL CURRENCY BANK: XXXXXXX CONSTITUTION PERIOD: From XX/XX to XX/XX/XX (XX-1)st Week COMPLIANCE PERIOD: From XX/XX to XX/XX/XX (XX)th Week RELATED AUXILIARY TABLES: 1, 2, 4, 6, 7, 8 and 9 (Values in AOA) SECTOR INSTITUTIONAL COEFFICIENT BASIC ACCOUNT AMOUNT CENTRAL GOVERNMENT IN NC 22% 2.10.10. Demand Deposits 0,00 2.10.20. Time Deposits 0,00 2.10.80. Other Deposits 0,00 2.50.20.10.Liabilities for Pending Settlement Operations 0,00 TOTAL LIABILITY 0,00 LOCAL GOVERNMENTS AND MUNICIPAL ADMINISTRATIONS IN NC 22% 2.10.10. Demand Deposits 0,00 2.10.20. Time Deposits 0,00 2.10.80. Other Deposits 0,00 2.50.20.10.Liabilities for Pending Settlement Operations 0,00