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2018-07-17

Directive No. 05-DMA-DRO-2018, of July 18

The Banco Nacional de Angola, through its Asset Markets and Financial System Regulation departments, establishes access requirements for banking financial institutions to utilize the Permanent Facility for Overnight Liquidity Provision (FCO). The directive caps institutional exposure per operation at 25% of Regulatory Own Funds and 100% of eligible portfolio securities, provided the total securities portfolio does not exceed 60% of Assets. It further empowers the central bank to adjust access conditions, suspend the facility, set quarterly maximum liquidity uptake amounts, and officially revokes Directive No. 03/DRO/DMA/16 upon publication.

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The Governor DIRECTIVE NO. 05/DMA/DRO/18 ORIGIN: Department of Regulation and Organization of the Financial System (DRO) Department of the Asset Market (DMA) DATE 18/07/2018 SUBJECT: Access Requirements for the Permanent Facility for Overnight Liquidity Provision - FCO WHEREAS financial institutions under the supervision of the Banco Nacional de Angola may benefit from Permanent Facility for Overnight Liquidity Provision (FCO) operations, in accordance with Notice No. 11/2011 of October 20; AND HAVING the need to streamline the conditions and access requirements of banking financial institutions for said operations; THIS Directive hereby establishes the following:

  1. For access to the Permanent Facility for Overnight Liquidity Provision (FCO), banking financial institutions, per operation, must not exceed: a) 25% (twenty-five percent) of their Regulatory Own Funds; b) 100% (one hundred percent) of eligible securities in the portfolio, on the date the operation is executed, provided that the securities portfolio does not exceed 60% (sixty percent) of Assets.

  2. The Banco Nacional de Angola may alter the access conditions for the Permanent Facility for Overnight Liquidity Provision (FCO) or suspend it at any time.

  3. Based on market liquidity evolution conditions, the Banco Nacional de Angola may also define maximum liquidity uptake amounts quarterly.

  4. Directive No. 03/DRO/DMA/16 is hereby revoked, along with any regulation contrary to this Directive.

  5. Doubts and omissions arising from the interpretation of this Directive are clarified by the Banco Nacional de Angola.

  6. This Directive enters into force on the date of its publication. ASSET MARKETS DEPARTMENT (DMA)

Maria Cândida Bernardete de Jesus Sambingo Director DEPARTMENT OF REGULATION AND ORGANIZATION OF THE FINANCIAL SYSTEM (DRO) Cândido Abrantes Pina Subdirector Directive No. 05/DRO/DMA/2018 Page 2 of 2

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