Angola takes on US$250 million loan

8 January 2015

The government of Angola will take on a loan of US$250 million from GemCorp Capital LLP (GemCorp), a company specialising in emerging markets, with headquarters in the UK, according to a presidential order of 5 January.

“As there is need to strengthen the financing of several projects of public interest, essential to national development,” reads the order, “the Republic of Angola will take out a loan of US$250 million.”

This is one of several financing agreements that the Angolan government has signed in recent months to secure the financing needs for 2015, given the drop in oil revenues outlined in the General State Budget (OGE).

With these loans, the Angolan government’s debt this year will exceed US$47.4 billion, or 35.5 percent of GDP, while in 2012 this figure was less than 11 percent, according to the State Budget report for 2015.

The deficit in the implementation of the State Budget for 2015, of 7.6 percent of GDP, will correspond to an expected need for funding of 1.031 trillion kwanza. (macauhub/AO)