The President of Angola authorised six issues of Treasury Bonds in the amount of 209.4 billion kwanza (US$2.03 billion) with individual maximum values starting at 4 billion kwanzas, according to presidential orders.
Five of these orders are explained by the need to “enhance prudential ratios” as well as increases in capital and expansion of three banks – Banco de Comércio e Indústria, Banco de Desenvolvimento de Angola and Banco de Poupança e Crédito, and two funds in which the state holds a stake.
These Treasury bonds have repayment terms of between 20 and 24 years offering a yearly interest rate of 5 percent.
The sixth authorisation, in the amount of 147 billion kwanza, will be used to correct “delayed budget implementation” from 2011, 2012, 2013 and 2014, setting payments terms of between four and 10 semesters.
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)