Notice No. 07/93 of May 18

NOTICE No. 07/93 of May 18
Considering the provisions of Article 21(b) of Law 4/91, which grants the Banco Nacional de Angola the authority to ensure the solvency and liquidity of Financial Institutions domiciled in the Country; Under Article 60 of the Organic Law of the Banco Nacional de Angola,

I HEREBY DETERMINE:
Article 1
The debt limit for Commercial Banks is set at 15 (fifteen) times the value of their Own Capital.
Article 2
For the purposes of calculating the debt limit referred to in the preceding article, the absolute values recorded in the following groups, subgroups, titles, and subtitles of the Financial Institutions' Chart of Accounts shall be considered:
3 - Third-Party Funds (+) 50 - Interdepartmental Accounts (-) 52 - Costs Payable (+)
Article 3
Regarding subgroup 50 - Interdepartmental Accounts, mentioned in the preceding article, the deduction shall be limited to the balance recorded in subgroup 50 - Interdepartmental Accounts, on the Asset side.
Article 4
The concept of Own Capital to be considered for the calculation purposes mentioned in Article 1 is as set forth in Notice 5/92 of August 12.
Article 5
A Commercial Bank that exceeds its debt limit shall be subject, inter alia, to the following restrictions:
a) prohibition on obtaining new authorizations for the establishment of Branches or Dependencies; b) prohibition on providing guarantees; c) prohibition on operating reciprocal credit agreements, as may be established by the BNA.

Article 6
This Notice enters into force immediately.
Luanda, May 18, 1993
THE GOVERNOR
GENEROSO HERMENEGILDO GASPAR DE ALMEIDA