The new Notice establishes (i) the modalities applicable to this type of credit, (ii) the minimum requirements in terms of number and total value and (iii) the treatment in the calculation of the required reserves.
The Central Bank of Angola (Banco Nacional de Angola, “BNA”) recently issued Notice 10/22 of April 6 to update the scope of Notice 10/20 of April 3 on the granting of credit to the real sector of the economy. The new Notice establishes (i) the modalities applicable to this type of credit, (ii) the minimum requirements in terms of number and total value and (iii) the treatment in the calculation of the required reserves.
The illustrative list of essential goods to which the advice applies has undergone minor changes and now includes beekeeping, pastry and bakery products, wheat crops and their derivatives, as well as fertilizers and corrective products soils. It no longer mentions cement, clinker, honey and construction paint.
The Notice provides for the following types of credit: (i) medium and long-term credit for investment, including for the purchase of machinery and equipment, which must have as a maximum duration the recovery period of the investment and may include financing with collateral and leasing; (ii) a short-term credit to purchase raw materials and other inputs from local suppliers in the domestic market, which must be granted for the estimated maximum period between its acquisition and the sale or payment by the buyer of the finished product ; and (iii) credit granted under factoring.
The Notice establishes the obligation for Commercial Banks to submit to the BNA, no later than February 28 of each year
Access to credit is now limited to bank customers who meet the following conditions: (i) they must be a legally incorporated company; (ii) they must have organized accounts and accounts certified by an accountant or chartered accountant registered with OCPCA; (iii) they must have an orderly tax situation; and (iv) they must provide proof of experience in the activity they perform and for which they are requesting credit.
One of the main changes introduced by the Notice concerns the total cost of credit, which covers the interest rate and commissions. This now varies according to the type of credit, as follows: in investment credit, it cannot exceed 7.5% per year, and in credit for the purchase of raw materials, inputs and factoring, it cannot exceed 10% per year.
Another of the main changes made to the Notice concerned the minimum requirements for the number of credits to be granted by each banking financial institution (“Commercial Bank”), which are now as follows: (i) Commercial banks with net assets as at 31 December from the previous year of AOA (Kwanza) 400,000,000,000: 25 credits; (ii) Commercial Banks with net assets as of December 31 of the previous year of AOA (Kwanza) 200,000,000,000: 20 credits; (iii) Commercial banks with net assets as of December 31 of the previous year of AOA (Kwanza) 50,000,000,000: 15 credits; (iv) Commercial banks with net assets as of December 31 of the previous year of AOA (Kwanza) 50,000,000,000: 5 credits. To comply with these requirements, factoring credits and renewals of short-term credits in the year they are granted and renewals in subsequent years, in addition to the first, in each calendar year, are not eligible. .
The Notice also modifies the amounts deductible from the amount of required reserves, which are now as follows: (i) 100% of the principal due and due for less than 90 days, in the case of medium and long-term investment credit; (ii) 50% of the principal due and past due for less than 90 days in the case of short-term credit; and (iii) 25% of the principal of credit past due for more than 90 days and of credit restructured due to the customer’s financial difficulties. The BNA may exceptionally allow the deduction of amounts referring to restructured credits granted to projects considered important in the national context, which do not meet the requirements set out in paragraph (ii) above, and it will determine the coefficients specific to such cases.
The notice goes on to establish the information that commercial banks must send to the BNA to claim the deductions. It also establishes the duty of information to which the Commercial Banks are bound in the event of unpaid debts of more than 90 days or restructuring of the credit due to the financial difficulties of the customer.
As part of the credit risk assessment and management requirements, the Notice determines that commercial banks should assess the possibility of a guarantee or agricultural credit insurance being provided to mitigate credit risk. Commercial Banks must also ensure regular monitoring of their customers in order to timely detect financial difficulties or other circumstances likely to increase the risk of default, then take appropriate measures to prevent or resolve the situation.
For their part, as part of their duty to provide information, commercial banks are required to maintain information on the conditions for accessing credit on their websites. This information should include an up-to-date list of documents and information that must be submitted by customers
O Aviso vem estabelecer a obrigação dos Bancos Comerciais a presentarem ao BNA, até 28 de Fevereiro de cada ano, as razões justifyativas do não cumprimento das metas anuais estabelecidas no Aviso, sendo qu’a decisão do BNA relativamente às medidas/sanções a aplicar deverá ser approved to March 31 of cada ano.
O Aviso entered into vigor no dia 7 de Abril de 2022.