Regulatory Alerts2018-11-19
Instruction No. 14/2018 of November 19
The National Bank of Angola issued Instruction No. 14/2018 to mandate the remuneration and valuation of collateral deposits held against letters of credit, capping their value at the converted letter amount using the commercial bank's reference exchange rate. The regulation requires these deposits to be remunerated either by indexing to LUIBOR (subject to a commercial margin) or at prevailing commercial bank interest rates, depending on whether they originate from this Instruction or Circular No. 5/2018. Violations are punishable under the Financial Institutions and Exchange Rate Laws, with all interpretative disputes and omissions resolved by the National Bank of Angola.
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