Brazil sets up new credit line for Angola worth US$2 billion

2 May 2012

A new credit line worth US$2 billion from the Brazilian government for Angola was officially set up Friday in Brasilia following the official signing of the document, the Brazilian press reported.

The document to set up the credit line was approved Wednesday during a meeting of the Council of Ministers of the Brazilian Chamber of Commerce fro Foreign Trade (Camex) and was signed by the Brazilian minister for development, Industry and Foreign Trade, Fernando Pimentel, and Angola’s Finance Minister Carlos Alberto Lopes, who ended a working visit to Brazil Sunday.

The funding will be provided by state bank Banco Nacional de Desenvolvimento Económico e Social (BNDES) to fund Brazilian exports of goods and services and, in return, the Angolan government has pledged to keep the equivalent of 20,000 barrels of oil per day in a bank account as a guarantee.

The new credit line is the result of negotiations that began at the end of 2011 during a Brazilian business mission to Africa. On that occasion Minister Fernando Pimentel pledged to expand credit lines to Angola as was of improving relations between the two countries. (macauhub)