Notice No. 05/91 of 15 November

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NOTICE No. 05/91 of 15 November
Considering the need to dynamize the activities of the banking system, in order to meet the new demands of the national economy; Considering that the fixed interest rates in force, established by Executive Decree 65/78 of 28 December by the Minister of Finance, are outdated relative to the operational needs of the two-tier financial system being implemented in the Country; Considering that the rediscount rate to be practiced by the Central Bank, in the execution of monetary policy, shall henceforth constitute the determining factor for the realignment of the other interest rates of the financial system, under Articles 26 and 60 of the Organic Law of the National Bank of Angola, I determine:

Article 1
(Passive Interest Rates)

1. Current accounts of individuals and legal entities shall not accrue interest.
2. The maximum remuneration rates for time deposits of individuals and legal entities are as follows:
   I - From 90 to 180 days - eight percent (8%) per annum; II - From 181 days to one year - twelve percent (12%) per annum; III - Greater than one year, but less than two years - thirteen percent (13%) per annum; IV - Deposits for two years or more - fourteen percent (14%) per annum.
3. Time deposits existing on the date of publication of this Notice shall continue to accrue interest at the rates in force on the date of their establishment.
4. Early withdrawal of time deposits before their respective maturity date is only permitted when at least half of the agreed period has elapsed since their establishment, with the applicable interest rate corrected to ¾ (three quarters) of the rate that would be due if the term were not interrupted, except when the actual immobilization period is less than 90 days, in which case no interest shall be payable.

Article 2
(Active Interest Rates)

1. In operations of the National Bank of Angola with Financial Institutions, interest shall be charged at the following annual rates:
   I - In Treasury Credit Operations, in the form of discounting in advance:
   RANGE A: fifteen percent (15%);
   RANGE B: sixteen percent (16%);
   RANGE C: seventeen percent (17%).
   II - In Secured Credit Operations, seventeen percent (17%) per annum, calculated on the outstanding balance and payable monthly.
2. In short-term credit operations, Financial Institutions shall not charge rates exceeding twenty percent (20%) per annum, including interest, commissions, and any other charges.
3. In medium and long-term credit operations, Financial Institutions may charge, in addition to the amount mentioned in the previous point, an immobilization rate of one percent (1%) per annum that shall apply to the amounts of credit granted and unused.
   3.1 - The immobilization rate shall be charged quarterly.
   3.2 - The aforementioned rate shall not be charged, provided that the immobilization follows a utilization schedule established upon credit approval.
4. Debtors who fall into default are obliged to pay an additional rate corresponding to five percent (5%) per annum on the amount of the overdue debt.

Article 3
This Notice shall enter into force on the date of publication and repeals any provisions to the contrary.

PUBLISHED
Luanda, 15 November 1991.
THE GOVERNOR,

Fernando Teixeira