Regulation On Microcredit Companies And Microcredit Operators

• Law Firm: PLMJ
• Subject Matter: Finance and Banking, Corporate/Commercial Law, Financial Services, Corporate and Company Law
• Author: Mr Gonçalo Dos Reis Martins, Renata Valenti and Joana Marques Dos Reis
• Published date: 02 May 2023

The Regulation on Microcredit Companies and Microcredit Operators was approved by Presidential Decree 89/23 of 31 March. It repeals Presidential Decree 28/11 of 2 February and entered into force on 1 April.

The Regulation lays down the rules for the operation of microcredit institutions and applies to institutions engaged in microcredit activities, namely:

• microcredit companies, defined as non-bank financial institutions engaged in microcredit activities and authorised to grant low and medium value loans to small and medium-sized enterprises; and
• micro-credit operators, defined as non-financial commercial enterprises whose purpose includes the granting of micro-credit on a non-exclusive basis, such as NGOs, associations and foundations.

For the purposes of the Regulation, "microcredit" means credit granted to micro and small enterprises, which may be natural persons or legal entities, on the basis of joint or individual liability, to carry out an economic activity, the amount of which is determined by the Banco Nacional de Angola ("BNA").

Operating as a microcredit provider is subject to authorisation by the BNA, in accordance with the provisions of the Law on the General Framework of Financial Institutions and complementary regulations.

The Regulation defines the positive and negative elements that constitute the basic own funds of microcredit institutions in order to cover the risks or losses they may incur. It also establishes the possibility of using the following means of financing in...