Sao Tome and Principe is most indebted Portuguese-speaking African nation

30 May 2006

Lisbon, Portugal, 30 May – Sao Tome and Principe is the Portuguese-speaking country with the greatest level of foreign debt, World Bank figures published Tuesday by the World Bank in its annual report on financing and development.

This classification is based on relating external debt to a number of other variables.

Thus, the nominal foreign debt of Sao Tome and Principe is the equivalent of 1,655 percent of its exports of goods and services, considering an average for 2002 to 2004.

By the same calculation method, Guinea Bissau’s level of debt stood at 791 percent, Mozambique at 310 percent, Cape Verde at 144 percent and Angola at 89 percent.

The information form the World Bank also showed that foreign debt was the equivalent of 666 percent of Sao Tome’s gross annual national income, 331 percent of Guinea Bissau’s, 98 percent of Mozambique’s, 74 percent of Angola’s and 67 percent of Cape Verde’s gross national income.

Debt servicing, which includes interest and amortization, weighed heaviest on Guinea Bissau, where it was the equivalent of 46 percent of exports of goods and services in the period under review.

Guinea Bissau was followed by Sao Tome and Principe (44 percent), Angola (19 percent), Cape Verde (7.0 percent) and Mozambique with 6.0 percent. (macauhub)