Angola: Kwanza deposits reached 49 pct in October

31 December 2007

Luanda, Angola, 31 Dec – Bank deposits in Angola’s national currency, the kwanza, rose from 41 to 49 percent of total deposit values between December, 2006 and October, 2007, the head of the country’s central bank said Friday

At an end-or-year ceremony, central bank governor Amadeu Mauricio said the significant role of foreign trade in Angola’s economy, coupled with historic instability of the kwanza, have meant there is still widespread use of the US dollar. About 50.2 percent of bank deposits last October were in foreign currencies.

Demand for Angola’s national currency will be consolidated in the long-term by the application of good management of fiscal, monetary and exchange rate policies, added Mauricio.

Many accomplishments were achieved during 2007, said the central bank chief, particularly the resumption of debt repayments to the Paris Club of creditor nations. At the end of 2006 and in the first half of 2007, Angola paid off its unpaid debts and service charges totaling around US$ 2.3 billion to these states.

US$ 34.5 million have already been paid to these Paris Club countries under Angola’s obligations for 2007, he added.

The Luanda government decided recently to pay delayed interest charges to the Paris Club states in three annual installments worth a total US$ 1.8 billion, said Mauricio.

Though this gesture the Angolan government seeks to regularize its debts to the Paris Club and normalize the country’s overseas financial and economic relations, added Luanda’s central bank chief. (macauhub)