Angola’s foreign reserves continue to rise

17 August 2011

Luanda, Angola, 17 Aug – Angola’s foreign currency reserves rose 5.1 percent in July against June totalling US$22.6 billion, according to figures from the National Bank of Angola.

Recently, the governor of the central bank, José de Lima Massano, announced that net foreign reserves had posted growth of 23.6 percent since the beginning of the year totalling US$21.4 billion on 30 June.

The Minister of State and head of the civil house of the Angolan presidency, Carlos Feijó, recently said that the government would postpone its first bond issue on the international market as it had, “no treasury difficulties.”

In the past, Angola, which is the second-largest oil producer in sub-Saharan Africa, had been slow to pay off its debts to construction companies.

This was the case in 2010 when a drop in oil prices lowered the country’s foreign reserves to US$12 billion, and this was one of the reasons that led the country to defer some payments to construction companies.

This rise in foreign reserves may make it easier to reduce the country’s debts to construction companies operating in Angola, Susana Santos, an economist at Portuguese bank BPI, told financial news agency Bloomberg.

Angola still owes construction companies US$2.7 billion of an initial debt of US46.8 billion, according to statements from Finance Minister Carlos Alberto Lopes, in June. (macauhub)