Special Scheme For Mortgage Credit And Construction Credit

• Published date: 29 April 2022
• Subject Matter: Finance and Banking, Charges, Mortgages, Indemnities, Financial Services
• Law Firm: PLMJ
• Author: Mr Gonçalo Dos Reis Martins, Renata Valenti and Joana Marques Dos Reis

Angolan Central Bank (Banco Nacional de Angola, "BNA") Notice no. 9/22 of 6 April was recently published to establish special schemes for mortgage credit and construction credit.

The Notice is binding on banking financial institutions of systemic importance in the domestic market and optional for other banking financial institutions ("Commercial Banks").

Regarding interest, the Notice determines that, during the first ten years, the maximum annual nominal interest rate is 7%. Then, from 1 June 2023, it will be the interbank market reference interest rate for the 30-day term. This may be increased by a margin, provided the total annual interest rate does not exceed 7% per year.

In construction credit, promoters of projects to build properties for residential purposes with a maximum sale value per unit of AOA (Kwanza) 100 million or less who meet the other requirements set out in the Notice.

In this type of credit, the term is to be determined in accordance with the characteristics of the project, up to a maximum of three years.

The Notice establishes that, during the first five years of the Notice being in force, the interest rate is 10% and, from 1 June 2027, it...