Regulatory Alerts2015-08-25
Regulation (NAP) - Standard on Bank Overdraft
The Central Bank of São Tomé and Príncipe issued this Permanent Application Standard to regulate the granting, management, and risk classification of bank overdrafts by authorized financial institutions. It mandates that overdraft facilities be formalized through independent contracts specifying limits, interest rates, and terms not exceeding 180 days, while unformalized withdrawals must be reclassified as doubtful or loss credits after 30 and 180 days, respectively. Banks must comply with these risk classification rules and formalize existing facilities within 90 days of the standard's immediate entry into force.
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