Angola plans to set up a Deposit Guarantee Fund, a public legal entity, according to a statement issued at the end of a Council of Ministers meeting held on Wednesday in Luanda.
According to the statement the aim of the Deposit Guarantee Fund is to guarantee the repayment of deposits at national banks if the banks themselves are unable to do so because of their financial situation.
Portuguese state news agency Lusa news said the intention dates back to 2015, following the approval of the Basic Law of Financial Institutions of Angola (law 12/15), which came into force on 17 June of that year.
Article 69 of Law 12/15 sets out the creation of the fund “in order to guarantee the reimbursement of deposits made in participating financial institutions.”
The same article notes that it is the responsibility of the holder of executive power – the President of the Republic – to create it, but without defining rules for its operation or the amounts that will be guaranteed by the fund.
In November 2014, the then governor of the National Bank of Angola, José de Lima Massano, suggested that all commercial banks in the country could contribute an amount equivalent to 0.03% of each deposit portfolio.
The intention was to guarantee up to 3 million kwanzas (US$11,800 at the current exchange rate), according to Lima Massano, who resigned in January 2015, establishing conditions to protect 90% of depositors of the Angolan banking system. (macauhub)