NATIONAL BANK OF ANGOLA

NOTICE No. 01/91

of October 16

Whereas mandatory reserves are a monetary policy instrument adopted by Central Banks, whose main objective is to control excess liquidity in the economy;

Thus, Central Banks require Financial Institutions to hold a percentage of their deposits in cash, as a preventive measure against the inflationary process, by curbing the growth of the money supply;

The Organic Law of the National Bank of Angola establishes, in paragraph 1 of Article 25, that the Bank may require Financial Institutions to establish mandatory reserves;

Therefore, taking into account the need to implement mechanisms that lead to the establishment of mandatory reserves with the Central Bank, in accordance with Article 60 of the aforementioned Organic Law, I hereby determine:

Article 1

Financial Institutions authorized to collect deposits from companies and individuals shall maintain mandatory reserves with the National Bank of Angola, and are prohibited from opening demand deposit accounts at any other financial institution, except in special cases with prior authorization from said Bank.

Article 2

1. The mandatory reserve coefficient is set at 20%, and may be altered whenever minimum cash availability conditions so require.

2. Mandatory reserves shall be demanded monthly, in national currency, on a basis referenced to the respective penultimate month, and shall not bear interest. Only reserves exceeding the monthly requirement may bear interest.

Article 3

The National Bank of Angola shall publish the regulation regarding the establishment of mandatory reserves.

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Article 4

This Notice enters into force immediately.

PUBLISHED.

Luanda, October 16, 1991.

THE GOVERNOR, Fernando Alberto da Graça Teixeira

[Signature]