Regulatory Alerts1994-04-01
Notice No. 6/94
The National Bank of Angola issued Notice No. 6/94 to align rediscount and banking interest rates with the 1994 Economic and Social Program's monetary policy and inflation targets. The regulation eliminates interest on demand and sub-60-day deposits, allows financial institutions to freely set rates for other time deposits while imposing a ¾ rate penalty for early withdrawals, and establishes active lending rates of 95% to 103% for treasury credit and 95% for secured credit, subject to monthly central bank adjustments. Additionally, it mandates free negotiation of bank active rates, prohibits commitment fees on scheduled credit utilization, imposes a 10% annual penalty on overdue debts, and immediately repeals Notice 9/93.
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