Directive No. 08-DMA-DRO-2019, dated October 24

GOVERNOR DIRECTIVE NO. 08/DMA/DRO/2019 ORIGIN: Department of Markets and Assets (DMA)

• Department of Regulation and Organization of the Financial System (DRO) DATE 24/10/2019 SUBJECT: Requirements for the Calculation and Compliance of Mandatory Reserves

Given the need to update the requirements for determining and complying with Mandatory Reserves in line with the current macroeconomic stability framework, aiming at the efficiency of monetary policy instruments, pursuant to Instruction No. 17/2019, dated October 24. This Directive serves to establish the following:

1. The period for establishing the tax base for calculating mandatory reserves in national currency (MN) and foreign currency (ME) is weekly.
2. Eligible for compliance with Mandatory Reserves in MN are the balances corresponding to the daily closing of the national currency demand deposit account, opened at the National Bank of Angola (BNA) in the name of each banking financial institution.
3. Eligible for compliance with Mandatory Reserves in ME are the following assets: 3.1 Foreign currency Treasury Bonds belonging to the own portfolio registered in SIGMA, valued at nominal value and issued from 2015 onwards, up to 80% (eighty percent) of effective liability; 3.2 Balance of the foreign currency deposit account, opened at the National Bank of Angola in the name of each banking financial institution.
4. The mandatory reserve coefficient in MN to be applied to the daily balances of the items comprising the tax base defined in point 2 of Instruction No. 17/2019 dated October 24, regarding Mandatory Reserves, excluding accounts of the Central Government, Local Governments, and Municipal Administrations, is 22%

DIRECTIVE NO. 08/DMA/DRO/2019 Page 2 of 3 (twenty-two percent). 5. The mandatory reserve coefficients to be applied to the daily balances of Central Government accounts – MN, Local Governments and Municipal Administrations - MN is 22% (twenty-two percent). 6. The mandatory reserve coefficient in ME to be applied to the daily balances of the items comprising the tax base defined in number 3 of Instruction No. 17/2019 dated October 24, regarding Mandatory Reserves, excluding accounts of the Central Government and Local Governments and Municipal Administrations, is 15% (fifteen percent). 7. The mandatory reserve coefficients to be applied to the daily balances of Central Government accounts – ME, Local Governments and Municipal Administrations - ME is 100% (one hundred percent). 8. The cash item corresponds to an amount of up to 5% (five percent) of the arithmetic mean of the cash account balances during the period. 9. The credit rights item comprises: 9.2 80% (eighty percent) of the Assets representing the value of disbursements of MN credits, granted as of the date of publication of this Directive, to projects in the agriculture, livestock, forestry, and fisheries sectors, provided they have a residual maturity of 24 (twenty-four) months or more; 9.3 100% of credits defined in accordance with Article 7 of Notice No. 04/2019, dated April 3, combined with Notice No. 07/2019, dated October 7, regarding Credit Concession to the Real Sector of the Economy, regardless of residual maturity. 10. Directive No. 04/DSP/DRO/2018 dated July 19 is revoked, along with all regulations contrary to the provisions of this Directive. 11. For the purpose of establishing the tax base for calculating Mandatory Reserves, banks must consider deposits from October 28 to November 1, 2019.

DIRECTIVE NO. 08/DMA/DRO/2019 Page 3 of 3 12. The effective compliance with the liability referred to in the previous point must occur starting November 4, 2019. 13. Doubts and omissions resulting from the interpretation of this Directive are resolved by the National Bank of Angola. 14. This Directive enters into force immediately. DEPARTMENT OF ASSET MARKETS

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Tânia Patrícia Mendes Lopes

• Director - DEPARTMENT OF REGULATION AND ORGANIZATION OF THE FINANCIAL SYSTEM

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Carla Marisa Madeira Gomes

• Director -