BANCO NACIONAL DE ANGOLA

NOTICE NO. 06/2010

of November 10

OFFICE OF THE GOVERNOR

Given the need to align capital requirements with the establishment of foreign exchange houses, in accordance with paragraph f) of Article 51 of Law No. 16/10, dated July 15, the Law of the Banco Nacional de Angola, combined with paragraph 2 of Article 6 and paragraph 1 of Article 92, all of Law No. 13/05, dated September 30 - the Financial Institutions Law;

I HEREBY DETERMINE:

Article 1.

(Minimum share capital of foreign exchange houses)

Foreign exchange houses authorized to operate by the Banco Nacional de Angola must have fully paid-up share capital and maintain own funds of at least Kz.10,000,000.00 (Ten million Kwanzas);

Article 2.

(Adjustments)

Operating foreign exchange houses whose own funds are below the minimum established in the preceding article must increase them within a maximum period of six (6) months from the effective date of this regulation;

Article 3.

(Repeal clause)

Paragraph d) of paragraph 1 of Article 1 of Notice No. 04/07, dated September 12, is hereby repealed;

Article 4.

(Entry into Force)

This Notice enters into force immediately.

PUBLISHED:

Luanda, November 10, 2010

THE GOVERNOR

JOSÉ DE LIMA MASSANO

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ANNEX

REGULATION ON THE PERMANENT LIQUIDITY LENDING FACILITY

I. OBJECTIVE

This Regulation aims to establish the framework for Permanent Liquidity Lending Facility operations.

I.1. Access to this type of operation is granted to authorized banking financial institutions that maintain a deposit account at the BNA and are subject to the mandatory reserve regime.

I.2. The Permanent Liquidity Lending Facility is conducted against the presentation of adequate guarantees, which consist of eligible assets, in accordance with the conditions set out in Chapter V of this Regulation.

I.3. The Permanent Liquidity Lending Facility will be conducted with the commitment to repurchase the assets mobilized as collateral by the indebted banking financial institution.

I.4. A banking financial institution may at any time be suspended or excluded from participating in permanent facility operations, based on prudential grounds or the occurrence of serious or persistent defaults on its obligations, as established in Chapter VIII of this Regulation.

II. FUND LIMITS FOR THE LIQUIDITY LENDING FACILITY

The permanent liquidity lending facility has limits defined in specific regulations.

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III. PURPOSES AND TERMS

For the purposes of this Regulation, the following purposes are defined for permanent facility operations, with terms specified in specific regulations:

III.1. The Permanent Liquidity Lending Facility operation is carried out at a pre-fixed interest rate designed to meet the liquidity needs of the financial institution to correct very short-term imbalances in its cash flows.

IV. INTEREST RATE AND REPAYMENT VALUE

IV.1. The interest rate for the Permanent Liquidity Lending Facility is published every business day by 8:30 a.m., via BNA communication on its website and in the most widely circulated newspaper.

IV.2. Settlement Amounts for Repayments of the Permanent Liquidity Lending Facility

The amounts for the financial settlement of repayments for these operations are calculated as follows:

IV.2.1. For Permanent Liquidity Lending Facility operations, the financial settlement value of the repayment “VFLR” corresponds to the initially lent value “VCI” by the BNA to the banking financial institution, plus interest on the operation, according to the following expression:

[ VFLR = VCI \times \left(1 + \frac{i_c + spread_c}{100}\right)^{\frac{n}{365}}, \quad \text{with} \quad i_c = \left[\left(\frac{\sum_{j=1}^{k} c_j m_j}{\sum_{j=1}^{k} m_j}\right)^{365} - 1\right] \times 100 ]

Where:

• (i_c + spread_c) = interest rate for liquidity lending facility operations;
• (spread_c) = Value defined by the BNA;

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V. ELIGIBLE ASSETS

V.1. Eligibility Criteria

V.1.1. Tradable assets registered in SIGMA, net of the system's respective valuation margin (haircut), are eligible for Permanent Liquidity Lending Facility operations.

V.1.2. The types of tradable assets eligible for Permanent Liquidity Lending Facility operations are as follows:

a) Public debt securities (Treasury Bonds and Bills);
b) Central bank securities;

VI. SETTLEMENT PROCEDURES FOR PERMANENT LIQUIDITY LENDING FACILITY OPERATIONS

Financial and securities settlements are subject to the rules and operational procedures set forth in the regulations of their respective settlement systems - SIGMA.

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VII. REQUESTS

Permanent Liquidity Lending Facility operations are conducted through specific SIGMA messages.

Participating banking financial institutions may access the permanent liquidity lending facility via SIGMA, for an overnight term, during hours defined in specific regulations.

VIII. PROCEDURES REGARDING DEFAULTS

A default occurs when the banking financial institution fails to pay, by the indicated date and time, the repayment of amounts lent through Permanent Liquidity Lending Facility operations.

Banking financial institutions in default are subject to measures provided for in specific regulations.

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i_c = weekly average interest rate calculated in the primary interbank market;
c_j = daily factor corresponding to the interest rate of the j-th operation conducted in the interbank market for the week prior to the liquidity facility;
m_j = Lending value of the j-th operation conducted in the interbank market for the week prior to the liquidity facility;
k = number of operations in the sample conducted in the interbank market, for the week prior to the liquidity facility
n = maturity of the operation, i.e., the number of days elapsed from the settlement date of the first operation (inclusive) to the settlement date of its return (exclusive).