Instruction No. 07/2020 of April 20

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INSTRUCTION NO. 07/2020 of April 20
SUBJECT: FINANCIAL SYSTEM

• Credit Granting

Whereas it is necessary to establish minimum service levels provided to consumers by defining a maximum response time, and the formalization and availability of credit to these clients; Under the combined provisions of Articles 70 and 73 of Law No. 12/15, dated June 17 – the Framework Law for Financial Institutions, and Article 51 of Law No. 16/10, dated July 15 – the Law of the National Bank of Angola.

I DETERMINE:

1. Procedures for the Receipt of Credit Applications
   1.1. Banking Financial Institutions must establish procedures for receiving credit applications from their clients, including the delivery at the time of request, in addition to other information required by current regulations, of the following:
   a) A "Product Sheet" with the minimum conditions required for access to that product, enabling clients to preliminarily assess their ability to meet said conditions; b) A "Check-List" form containing the information and documentation that the client must obligatorily present, considering the provisions of Guidance Note No. 4/2019, to allow for the analysis of their application; c) The Banking Financial Institution shall only accept the application if it is accompanied by all required information/supporting documents as specified in the form.

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2. Timeframes for Analysis and Communication of the Final Decision
2.1. Banking Financial Institutions must establish internal timeframes for analyzing credit applications and requesting additional information when necessary, in order to transmit their final decision to clients within the timeframes indicated in the table below, counted from the date of receipt of the credit application, regardless of whether the response is positive or negative, namely:
2.2. The timeframe for requesting additional information is included in the timeframe for communicating the final decision to the client, with its count suspended until the client delivers the requested information/documentation.
2.3. Banking Financial Institutions must communicate their decisions to clients in writing through the channel used by the client for the credit request, or another requested by the client.
2.4. In case of a positive response, the Banking Financial Institution must send the terms and conditions under which it is willing to grant the credit to the client and request that the client communicate its acceptance, or any issues it wishes to raise, in writing within 10 business days, indicating the contact details of the person to whom such communication should be sent.

Timeframe to Request Additional Information	Timeframe to Communicate Decision to Client
Business Days	Business Days
a) Agricultural and Industrial Investment Projects	15	40
b) Other Investment Projects exceeding Kz 600 million	15	40
c) All Other Credit Applications	5	20
d) Non-Mortgage Personal Credit	5	15
e) Housing Credit	5	30

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3. Timeframes for the Formalization and Availability of Credit
3.1. Once the terms and conditions of the credit grant are agreed upon, Banking Financial Institutions must, within 10 business days, send the draft credit contract to the client for review, requesting that the client communicate its acceptance within 10 business days.
3.2. Upon receiving the client's response, the Banking Financial Institution must carry out all necessary acts to make the contract valid and effective, making every effort to ensure that acts involving entities external to the Banking Financial Institution are carried out in the shortest possible time, but in any case within the following timeframes:
a) Execution of contracts that do not require public deed – 5 business days; b) Acknowledgment of signature or notarization – 10 business days; c) Execution of contracts requiring public deed – 20 business days; d) Registration of mortgage with the land registry office – 40 business days; e) Formalization of documents and other guarantees dependent on entities external to the Banking Financial Institution – 40 business days; f) Fulfillment of stipulated prior conditions in the contract – 20 business days.
3.3. The Banking Financial Institution must coordinate with the client for their attendance at acts requiring it, notifying them that failure to appear may invalidate the credit approval.
3.4. Once all formalities are completed to make the contract valid and effective, including but not limited to mortgage registration and insurance contracting, as applicable, Banking Financial Institutions must register the contract in their systems to allow for credit utilization within 7 business days from the effective date of the contract.
3.5. If, within 30 business days from the client's acceptance of the credit contract, it remains unsigned due to the client's failure to appear; or if signatures have not been acknowledged and/or notarized, the Banking Financial Institution must cancel and archive the file.

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4. Information and Assistance Duties
Banking Financial Institutions must provide complete information to their clients at each stage of the credit application and grant process, as stipulated in current regulations, including Guidance Note No. 14/2016 regarding information duties under credit contracts.

5. Client Complaints
   Clients may directly submit to the National Bank of Angola well-founded complaints in case of non-compliance with the rules established in this Instruction by Banking Financial Institutions.

6. Sanctions
   Non-compliance with the obligations set forth in this Instruction constitutes a regulatory offense punishable under Law No. 12/15 of June 17 – the Framework Law for Financial Institutions.

7. Doubts and Omissions
   Doubts and omissions arising from the interpretation and application of this Instruction are resolved by the National Bank of Angola.

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8. Entry into Force
This Instruction enters into force 30 (thirty) days after the date of its publication.
PUBLISH.
Luanda, April 20, 2020.
THE GOVERNOR
JOSÉ DE LIMA MASSANO