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2019-08-30

Notice No. 06/2019 of August 30 on Microcredit Societies

The Bank of Angola, through Governor José de Lima Massano, amends Articles 2 and 6 of Notice No. 08/12 to redefine microcredit as loans up to seven million Kwanzas granted to small entrepreneurs on individual or joint liability bases. The revised provisions establish credit limits at eight percent of regulatory own funds for individual clients and twenty-five percent for legal entities or groups, while explicitly permitting microcredit societies to provide consulting services and grant guarantees. This Notice repeals the prior text of Articles 2 and 6 and enters into force upon its publication in the Official Gazette.

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PUBLISHED IN THE OFFICIAL GAZETTE, FIRST SERIES, NO. 113, OF AUGUST 30, 2019 NOTICE NO. 06/2019 SUBJECT: MICROCREDIT SOCIETIES

  • Amendment of the Text of Articles 2 and 6 of Notice No. 08/12, dated March 30 With the aim of encouraging credit granting for the development of economic activities by small entrepreneurs; Pursuant to the combined provisions of subparagraphs d) and f) of paragraph 1 of Article 21, and subparagraph d) of paragraph 1 of Article 51, both of Law No. 16/10, dated July 15 – Bank of Angola Act, and paragraph 1 of Article 65 of Law No. 12/15, dated June 17 – Framework Law on Financial Institutions. IT IS DETERMINED:

Article 1. (Amendment of the text of Articles 2 and 6 of Notice No. 08/12, dated March 30) Articles 2 and 6 of Notice No. 08/12, dated March 30, are amended and shall henceforth read as follows:

“Article 2. – (Definition of Microcredit)

  1. For the purposes of this Instrument, microcredit is a loan granted to a small entrepreneur, whether an individual or legal entity, on a joint and several or individual liability basis, for the development of an economic activity, the amount of which shall not exceed Kz 7,000,000 (seven million Kwanzas), subject to the limits set forth in Article 6 of this Notice.

CONTINUATION OF NOTICE NO. 06/2019 Page 2 of 2 2. In addition to credit granting, the societies subject to this Notice may also carry out the following operations: a) Providing consulting services to their clients; and, b) Granting guarantees.

Article 6. – (Credit Limits)

  1. The total value of active credits and granted guarantees per client, an individual person, shall not exceed 8% (eight percent) of the Regulatory Own Funds, on an individual liability basis.
  2. The total value of active credits and granted guarantees per client, a legal entity or group of persons, shall not exceed 25% (twenty-five percent) of the Regulatory Own Funds, on a joint and several liability basis.”

Article 2. (Repeal) The provisions of Articles 2 and 6 of Notice No. 08/12, dated March 30, are hereby repealed.

Article 3. (Interpretation and Omissions) Any doubts and omissions arising from the interpretation and application of this Notice shall be resolved by the Bank of Angola.

Article 4. (Entry into Force) This Notice shall enter into force on the date of its publication. PUBLISH. Luanda, August 26, 2019. THE GOVERNOR JOSÉ DE LIMA MASSANO

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