The government of Angola has approved borrowing of US$1.5 billion from Russian bank VTB Capital, the investment bank of the VTB group, the Angolan press reported.
With this funding, the government will “implement the public investment projects identified in the National Development Plan” outlined in the General State Budget, including infrastructure, according to the presidential order approving the loan.
In recent months the Angolan government has taken on several loans for construction projects in the country, which have coincided with a drop in tax revenues from oil exports, which account for two thirds of total tax revenues.
Angolan weekly newspaper Expansão reported a few days ago that Angola’s public accounts ended the first half of 2014 with a deficit of 615 billion kwanza (about US$6.3 billion), which was almost the deficit of 630 billion kwanza expected for the entire year.
The deficit is the result of revenues of 1.942 billion kwanza, which fell 11.6 percent, due to a 21 percent drop in oil income, and expenses of 2.557 billion kwanza, which rose 47.7 percent driven by investment. (macauhub/AO)