Regulatory Alerts2014-09-22
Regulation (NAP) - Provisional Special Administration
The Central Bank of São Tomé and Príncipe (BCSTP) establishes the legal framework for Provisional Special Administration as a precautionary resolution mechanism to address distressed financial institutions without immediate full intervention. This measure empowers the BCSTP to suspend existing governing bodies, appoint a provisional administration of up to three members, and exercise specific corrective powers—including corporate reorganization, capitalization, debt renegotiation, and asset transfers—to restore financial stability and protect depositors. The appointed administration operates for a maximum of six months, bears defined liability for unlawful acts or gross negligence, and funds its remuneration directly from the institution's account at the central bank.