Loan defaults at Angolan bank Banco de Desenvolvimento de Angola at the end of December stood at 17 percent of total credit provided of around 94 billion kwanzas, said Valter Barros, the bank’s chief executive.
Speaking to Angolan newspaper Expansão, Barros, who is responsible for accounts, also said that by 20 December the bank had 726 credit operations across Angola’s 18 provinces.
He also said that defaulted loans were not always directly due to non-payment by customers but rather to other problems related to importing equipment and customs delays.
Barros said that a number of customers that had requested loans for importing equipment had negotiated a grace period with the bank and after “delays at Customs or even to work to install an industrial unit,” have not spoken to the bank “before the period ends,” to renegotiate the loan.
The BDA manages the National Development Fund, which is funded by 5 percent of overall tax revenues from the oil sector and 2 percent of tax revenue from diamonds.
On average the bank receives over US$300 million from the Treasury, which fluctuates based on the price of oil. The fund’s current balance stands at around US$2 billion. (macauhub)