Notice No. 6/94

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NOTICE No. 6/94
April 1, 1994
Considering the need to adjust rediscount rates and bank interest rates to the principles and objectives of the Monetary Policy defined in the Economic and Social Program for 1994; Taking into account that the fixed interest rates established by Notice No. 09/93 of September 10 are outdated regarding the need to revitalize the banking system and do not meet the current requirements for stabilizing the national economy; Under Articles 26 and 60 of the Organic Law of the National Bank of Angola, HEREBY DETERMINE:
Article 1
(Passive Interest Rates)

1. Demand deposits and those with a term of less than 60 days do not accrue interest.
2. The remuneration rates for other time deposits are freely determined by the deposit-taking financial institutions.
3. Time deposits existing on the date of publication of this Notice will continue to accrue interest at the rates established on the date of their establishment.
4. Early withdrawal of time deposits before their maturity date is only permitted when at least half of the agreed period from the date of establishment has elapsed, with the applicable interest rate adjusted to ¾ (three quarters) of what would have been due had the term not been interrupted, except when the effective immobilization period is less than 60 days, in which case no interest shall be paid.
   Article 2
   (Active Interest Rates)
5. In operations between the National Bank of Angola and Financial Institutions, interest shall be charged at the following annual rates:
   I. In Treasury Credit Operations:
   RANGE A: ninety-five percent (95%);
   RANGE B: ninety-nine percent (99%);
   RANGE C: one hundred and three percent (103%).

II. In Secured Credit Operations, ninety-five percent (95%) per annum, calculated on the outstanding balance and payable monthly.
2. The National Bank of Angola shall conduct a monthly review of the aforementioned rates to adjust them to the expectation of a gradual reduction in the inflation level established in the targets of the Economic and Social Program for 1994;
3. Financial Institutions shall adopt, in their active operations, interest rates to be freely established between the parties, including with regard to the immobilization rate on contracted and unused credits:
4. The aforementioned immobilization rate shall not be charged if the immobilization follows a usage schedule established upon credit approval.

5. Debtors in default are required to pay an additional rate corresponding to ten percent (10%) per annum on the amount of the overdue debt.
   Article 3
   (Final Provisions)
6. Notice No. 9/93 of September 10 is hereby repealed.
7. This Notice enters into force immediately.
   PUBLISH
   Luanda, April 1, 1994.
   THE GOVERNOR
   Generoso Hermenegildo Gaspar de Almeida