Regulatory Alerts2020-10-16
Notice No. 21/2020 of 16 October
The Banco Nacional de Angola issued Notice No. 21/2020 to permit banking financial institutions to defer the recognition of impairment losses on Angolan public debt securities in their 2020 balance sheets, preventing sudden declines in Regulatory Own Funds triggered by the COVID-19 pandemic. Institutions must obtain prior authorization, submit a detailed action plan covering capital shortfalls by 31 December 2020, and apply a linear method over a maximum three-year period. The notice further mandates that institutions disclose pre- and post-deferral Regulatory Own Funds in annual statements, ensure no double-counting of deferred tax assets, and remain subject to existing solvency ratio requirements and sanctions for non-compliance.
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