Instruction No. 2/93: Organization of Foreign Bank Branches

INSTRUCTION NO. 2/93
SUBJECT: FINANCIAL SYSTEM

• Organization
  . Foreign Bank Branches
  Whereas the minimum capital for the establishment of Banks set forth in Notice No. 5/93 of April 14 also applies to foreign bank branches; Whereas the capital of these branches is constituted with resources derived from foreign investment carried out entirely in foreign currency; Whereas the licensing of this capital may only be carried out upon proof of the sale of the respective foreign currency to the Central Bank; In exercise of the competence conferred upon me by Law No. 4/91 of April 20; I HEREBY ORDER:
  Article 1

1. Foreign bank branches established in the Country shall not immobilize more than 70% of their own funds.
2. The immobilizations referred to in the preceding point are limited to the value of assets intended for the branch's own use and provided they are considered indispensable for the exercise of its banking activities.
3. The own funds to be considered for the calculation referred to in point 1 shall be determined according to the criteria established in Notice No. 5/92 of August 12.
   Article 2
   The initial capital of the Branch may be immediately applied to the following purposes:
   a) settlement of financing contracted with the parent institution to cover the Branch's facilities and respective equipment, provided that such financing has been duly licensed by the National Bank of Angola. b) establishment of a foreign exchange position equivalent to a maximum of 50% of the constituted capital, through direct purchase from the National Bank of Angola at the foreign exchange rate on the date of the branch's share capital constitution, resulting from foreign currency from the direct investment of the parent institution.

Article 3
This Instruction enters into force immediately.
Published
Luanda, April 21, 1993
The Governor
Generoso Hermenegildo Gaspar de Almeida