Instruction No. 13-1994 of November 18

INSTRUCTION NO. 13/1994
SUBJECT: - FINANCIAL SYSTEM
Active Operations
Advances to Depositors

Considering the current economic situation and the current level of development of banking activity in the Country; Pursuant to the competence established in Article 2 of Law No. 4/91 of April 20. I HEREBY DETERMINE:
Article 1.
Financial Institutions authorized to receive deposits in national currency may cover any temporary insufficient balance in their clients' accounts through the granting of advances to depositors, also and exclusively in national currency, without prejudice to what is established in Article 21 of Law No. 5/91 of April 20.
Article 2
The advance referred to in the preceding article falls, for all purposes, under the concept of "credit granted".
Article 3.
The existence of overdraft balances in current deposit accounts, whether in national or foreign currency, held by residents or non-residents, remains prohibited, as provided in Notices Nos. 2/92 and 7/92, respectively dated April 3 and August 12, and in Instruction No. 1/94 of April 22.