Instruction No. 08/2021 of May 14 on Central Government Balances Recorded in Banking Financial Institutions' Balance Sheets

INSTRUCTION NO. 08/2021 of May 14 SUBJECT: FINANCIAL SYSTEM

• Central Government Balances Recorded in the Balance Sheets of Banking Financial Institutions

Whereas the funds of the Central Government must be integrated into the Treasury Single Account, which under the law is maintained with the National Bank of Angola, and must also maintain bank accounts domiciled at Banking Financial Institutions to facilitate the execution of banking operations. Whereas, equally, there is a need to adjust the treatment of Central Government Balances recorded in the books of Banking Financial Institutions, so that these institutions may provide tax collection services to the Central Government through the General Tax Administration; In exercise of the powers conferred upon me by Article 51 of Law No. 16/10, of July 15, the National Bank of Angola Law,

I DETERMINE:

1. Banking Financial Institutions must ensure the adequate classification and recording of all Central Government Balances denominated in national and foreign currencies in their balance sheets, including balances from accounts held by the Government and in accounts for Obligations arising from Tax Collection Services, hereinafter collectively referred to as "Central Government Balances".
2. Banking Financial Institutions must deposit the amount corresponding to the total Central Government Balances, recorded in their balance sheets, into specific accounts opened at the National Bank of Angola by the close of each business day until 8:00 a.m. on the following business day, in the same currencies used for recording said balances.
3. For the purposes of the preceding paragraph, accounts must be opened in the name of each Banking Financial Institution.
4. Banking Financial Institutions must record the accounting entry in account number 1.10.20 - Central Bank Funds, for the total amount of Central Government Balances deposited in specific accounts opened at the National Bank of Angola.
5. Banking Financial Institutions must exclude from the base for calculating Mandatory Reserves, the Central Government Balances covered by this Instruction.
6. All regulations contrary to the provisions of this Instruction are hereby revoked, notably paragraphs 3, 14 and 15 of Instruction No. 02/2021, of February 10, and paragraphs 3 and 7 of Directive 05/DMA/2021, of May 5, on Requirements for the Calculation and Compliance with Mandatory Reserves, regarding provisions related to accounting account 2-50.20.30 - Obligations arising from Tax Collection Services and the Central Government.
7. Banking Financial Institutions must comply with the provisions of this Instruction starting from May 24, 2021.
8. Doubts and omissions resulting from the interpretation of this Instruction are resolved by the National Bank of Angola.
9. Non-compliance with the provisions of this Instruction constitutes an offense punishable under Law No. 12/15, of June 17, the Basic Law on Financial Institutions.
10. This Instruction enters into force on the date of its publication.

PUBLISH. Luanda, May 14, 2021.

THE GOVERNOR JOSÉ DE LIMA MASSANO

CONTINUATION OF INSTRUCTION NO. 08/2021 Page 2 of 2