Directive No. 06/DMA-2022 – Requirements for the Calculation and Compliance of Mandatory Reserves

GOVERNOR DIRECTIVE NO. 06/DMA/2022 ORIGIN: Asset Market Department (DMA) DATE 02/06/2022 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 to the current macroeconomic stability framework, aiming at the efficiency of monetary policy instruments, in accordance with Instruction No. 02/2021 of February 10. This Directive serves to establish the following:

1. The period for establishing the incidence base for calculating Mandatory Reserves in national currency (NC) and foreign currency (FC) is weekly.
2. The Mandatory Reserve coefficient in NC to be applied to the balances of the weekly average of the items comprising the incidence base, defined in number 2 of Instruction No. 02/2021 of February 10, on Mandatory Reserves, is 19% (nineteen percent).
3. Daily balances of the mandatory reserve account in NC, opened at the National Bank of Angola (BNA) under the name of each Banking Financial Institution, are eligible for complying with Mandatory Reserves in NC.
4. Daily balances of the guarantee accounts for the Credit Transfer Subsystems (STC), Check Clearing Subsystem (SCC), Direct Debits Subsystem (SDD) and Multicaixa subsystem (MCX) are not eligible for complying with Mandatory Reserves in NC.
5. The Mandatory Reserve coefficient in FC, to be applied to the balances of the weekly average of the items comprising the incidence base, defined in number 3 of Instruction No. 02/2021 of February 10, on Mandatory Reserves, is fixed at 22% (twenty-two percent).
6. The Mandatory Reserve coefficients to be applied to the daily balances of accounts for Central Government – FC, Local Governments and Municipal Administrations – FC, is 100% (one hundred percent).
7. The following assets are eligible for complying with Mandatory Reserves in FC: a) Foreign Currency Treasury Bonds, belonging to the Banking Financial Institution's own portfolio, registered in SIGMA, relating to a special issuance of December 10, 2015, up to 50% (fifty percent) of effective eligibility; and b) The balance of the foreign currency deposit account opened at the National Bank of Angola, under the name of each Banking Financial Institution. Deducted by the corresponding 100% (one hundred percent) of deposits in the name of the Central Government maintained in the financial institution's books;
8. The Credit Rights item comprises: a) 80% (eighty percent) of Assets representing the value of disbursements for NC credits in regular status, relating to projects from the agriculture, livestock, forestry and fisheries sectors, granted up to April 14, 2021, provided they have a residual maturity equal to or greater than 24 (twenty-four) months; b) Credits, defined according to Article 8 of Notice No. 10/2022 of April 6, on Credit Concession to the Real Sector of the Economy, regardless of residual maturity; c) Credits, defined according to Article 10 of Notice No. 09/2022 of April 6, on Housing Credit Concession, regardless of residual maturity; d) The effective deduction of credits from mandatory reserves, referred to in the preceding sub-items, must only be carried out after validation by the Credit Monitoring Office (GAC);

CONTINUATION OF DIRECTIVE NO. 06/DMA/2022 2 of 3 e) For the purpose of total or partial deduction of credit rights, banks must send information to GAC, indicating the credits to be deducted from Mandatory Reserves. 9. Effective compliance with the requirement shall occur starting June 6, 2022. 10. Doubts and omissions resulting from the interpretation of this Directive are resolved by the National Bank of Angola. 11. Directives No. 05/DMA/2021 of May 5 and 07/DMA/2021 of July 6 are revoked, as well as all regulations contrary to the provisions of this Directive. 12. This Directive enters into force immediately.

Luanda, June 2, 2022. ASSET MARKETS DEPARTMENT Tânia Patrícia de Oliveira Mendes Lopes -Director-