Regulatory Alerts2020-09-21
Instruction No. 15/2020 of September 22
The Bank of Angola mandates commercial banks to convert foreign currency housing loans for individual clients without local income into national currency, establishing fixed exchange rates, variable interest rate indexing to LUIBOR, and extended loan terms. Banks must contact clients, retain written consent, prohibit restructuring and conversion fees, and apply margin-free exchange rates while adjusting interest rates or installments to reduce default risk for clients with debt service ratios exceeding 40% and 60%. The converted loan values are purchased by the central bank with a D+1 value date, and banks must report sales electronically within specified deadlines under the instruction's validity period ending December 30, 2020.
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