Angola: Development bank prioritizes projects worth over US$5 million

22 January 2008

Luanda, Angola, 22 Jan – Angolan bank, Banco de Desenvolvimento de Angola (BDA) is to give priority to funding projects worth over US$5 million, the bank’s chief executive, Valter Barros said Monday in Luanda.

Speaking at the opening of a seminar on credit processes, aimed at financial managers with which the BFDA in 2007 signed cooperation deals, Barros said that projects worth less than US$5 million would be re-processed as credit lines with retail banks.

The bank’s aim, he noted, was to finance large structural projects, on the one hand, for the sustainable economic development of the country, and on the other hand to finance good deals that guarantee the return of the funds provided by the BDA.

According to Barros, retail banks that are to work with the BDA’s assets, should have the same philosophy in relation to resources management and strictness in assessing the projects to be funded.

Barros also said that the bank’s board of directors was studying the possibility of creating other sources of revenue for the BDA, as well as those from the National Development Fund.

The resources of the fund are from oil and diamond tax revenues.

Although it is a national bank, the BDA does not have a network of branches spread across the country, and this is the reason for its making use of the branches of retail banks operating in the market, in order to be able to work with producers all over Angola.

The BDA was set up in 2006 and finances projects linked to the production chains of maize, beans and construction materials. For the production chain of maize and beans, in 2007 funding covered the provinces of Bengo, Benguela, Bié, Huambo, Huíla and Kwanza-Sul.

The meeting, which will take place until Wednesday, aims to provide the banks operating credit lines for the BDA with the necessary tools for the credit process, namely the criteria for selection, analysis and approval as set out by the bank. (macauhub)