The rise in Angola’s public debt, which this year is expected to reach US$47 billion or 45.8 percent of gross domestic product (GDP), will increase debt interest to US$2.162 billion in 2015, according to the amending State Budget.
The new document, to be discussed in detail in the Angolan parliament until 19 March, includes a budget deficit of 7 percent, due to a strong drop in tax revenues due to a drop in international oil prices.
The Angolan public deficit in 2015 is now estimated at 806.5 billion kwanzas (US$7.55 billion), which will require further borrowing, already negotiated with the World Bank, BBVA (500 million euros) Goldman Sachs (US$250 million) and Gemcorp Capital (US$250 million).
Interest payments have been rising in line with the country’s debt levels since 2013, when the stock of public debt stood at US$30.6 billion, or the equivalent of 30.6 percent of GDP.
In 2014 Angolan state debt rose to US$36.5 billion, or just over 31 percent of GDP.
In the State Budget which came into force on 1 January, the Angolan government estimated debt at the end of 2015 would total US$48.3 billion, equivalent to 35.5 percent of GDP.
In the budget under discussion, the amount of debt is revised downwards to US$47 billion, or 45.8 percent of GDP, which is due to a downward review of economic growth in the revised state budget to 6.6 percent, from 9.7 percent previously. (macauhub/AO)