Angola: Government to use oil revenues to invest in capital markets

19 November 2007

Riyadh, Saudi Arabia, 19 Nov – Angola plans to create a fund for investing in international money markets, fed by surplus oil revenue, the Angolan finance minister said in Riyadh Friday.

Speaking to the press on the sidelines of a meeting of the Organization of Petroleum Exporting Countries (OPEC) in the capital of Saudi Arabia, José Pedro de Morais declined to give details on the creation of the fund.

Morais announced that by December 31 all of Angola’s debts to the Paris Club would be paid off, which at one point totaled 2.3 billion euros.

In March of this year Angola owed the creditor club US$800 million in interest.

In terms of future financing for reconstruction of the country, the minister said that the government would focus on issuing bonds and taking out direct loans, rather than financing agreements backed by oil as is the case with China’s Eximbank.

This month Angola concluded an agreement with a banking syndicate for concession of a US$3.5 billion loan.

Within months, he said, a final decision would be made on issuing bonds to foreign investors.

The government also plans to issue bonds to the value of US$1.5 billion in 2008 and US$1 billion in 2009. (macauhub)