Directive No. 04/2024 on Requirements for the Calculation and Compliance of Mandatory Reserves

DIRECTIVE NO. 04/2024 ORIGIN: MARKETS DEPARTMENT (DME) DATE 17/06/2024 SUBJECT: FINANCIAL SYSTEM

• 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 framework, aiming at the efficiency of monetary policy instruments, pursuant to Regulatory Instruction No. 06/2024 of June 12 on Mandatory Reserves; This Directive serves to establish the following:

1. The period for establishing the base for calculating Mandatory Reserves in national currency (NC) and foreign currency (FC) is monthly, with the calculation performed in the following month (m+1) after the balance formation (m), and compliance occurring in the subsequent month (m+2);
2. The Mandatory Reserve coefficient in NC to be applied to the monthly average balances of the items comprising the base, as stipulated in paragraph 2 of Regulatory Instruction No. 06/2024 of June 12 on Mandatory Reserves, is 21% (twenty-one percent).
3. The Mandatory Reserve coefficient to be applied to the monthly average balances of accounts for Local Governments and Municipal Administrations - NC, is 21% (twenty-one percent).
4. Daily balances of the Mandatory Reserve account in NC, opened at the National Bank of Angola (BNA) in the name of each Banking Financial Institution, are eligible for compliance with Mandatory Reserves in NC.
5. Non-compliance with the level of Mandatory Reserves shall be considered whenever the average balance during the period in the Mandatory Reserve account is lower than the effective requirement.
6. Daily balances of guarantee accounts for the Credit Transfer Subsystem (STC), Check Clearing Subsystem (SCC), Direct Debit Subsystem (SDD), and Multicaixa (MCX) subsystem are not eligible for compliance with Mandatory Reserves in NC. GOVERNADOR

DIRECTIVE NO. 04/2024 Page 2 of 3 7. The Mandatory Reserve coefficient in FC, to be applied to the monthly average balances of the items comprising the base, as stipulated in paragraph 3 of Regulatory Instruction No. 06/2024 of June 12 on Mandatory Reserves, is fixed at 22% (twenty-two percent). 8. The coefficients of Mandatory Reserves to be applied to the daily balances of accounts for the Central Government - FC, Local Governments and Municipal Administrations - FC, is 100% (one hundred percent). 9. Daily balances of the FC deposit account opened at the National Bank of Angola, in the name of each Banking Financial Institution, are eligible for compliance with Mandatory Reserves in FC, after deducting the corresponding 100% (one hundred percent) of deposits held in the name of the Central Government, maintained in the books of the Financial Institution; 10. The Credit Rights item comprises: a) 80% (eighty percent) of the Assets representing the value of disbursements for NC loans in regular status, relating to projects in the agriculture, livestock, forestry, and fisheries sectors, granted up to April 14, 2021, provided they have a residual maturity of equal to or greater than 24 (twenty-four) months; b) Loans defined in accordance with Article 8 of Notice No. 10/22 of April 6 on Credit Granting to the Real Sector of the Economy, regardless of residual maturity; c) Loans defined in accordance with Article 11 of Notice No. 09/23 of August 3 on Housing Credit Granting, regardless of residual maturity; d) The outstanding principal of the effective loans to be deducted from mandatory reserves, referred to in the preceding subparagraphs, shall only be executed after validation by the Organizational Unit of the National Bank of Angola responsible for credit monitoring within the scope of the aforementioned regulations; e) For the purposes of total or partial deduction of credit rights, Banking Financial Institutions must submit information to the Organizational Unit of the National Bank of Angola responsible for Credit Monitoring within the scope of the aforementioned regulations, indicating the loans to be deducted from Mandatory Reserves. f) Credit rights are suspended, until due regularization with the Organizational Unit of the National Bank of Angola responsible for Credit Monitoring, relating to all credit operations granted under Notice No. 10/22 of April 6 and Notice No. 09/2023 of August 3, which are in a state of non-compliance for a period equal to or greater than 180 (one hundred and eighty) days.

11. For the purposes of establishing the base for calculating Mandatory Reserves, Banks must consider deposits as of May 1, 2024.
12. The effective compliance with the requirement referred to in the preceding point must occur starting July 1, 2024.
13. Doubts and omissions resulting from the interpretation of this Directive are resolved by the National Bank of Angola.
14. Directive No. 01/24 of January 30 is hereby revoked, along with all regulations that contradict the provisions of this Directive.
15. This Directive enters into force on the date of its publication. Luanda, June 17, 2024. MARKETS DEPARTMENT Tânia Patrícia de Oliveira Mendes Lopes -Director-