The government of Angola will borrow US$500 million from French bank Société Générale following a framework agreement approved by a presidential order of 8 April.
The order, cited by Portuguese news agency Lusa, explains the approval based on “the government’s strategy with regard to the diversification of funding sources to cover public investment projects.”
Meanwhile, Angola has already secured a 500 million-euro loan from Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) and US$250 million each from US bank Goldman Sachs and British fund Gemcorp Capital.
In addition, and for the same reasons, in August Angola approved a loan of US$1.5 billion from Russia’s VTB Capital PLC.
In addition to this, this month a loan of US$123.7 million was approved by the African Development Bank (AfDB) to finance a water supply and sanitation project in Angola.
On 26 February there were reports that South Africa’s Rand Merchant Bank (RMB) will finance the project for reconstruction of two Angolan national roads (EN 180 and 225) with a loan of US$216 million.
The “hole” in Angola’s public accounts due to the sharp drop in oil revenues, is now estimated at 806.500 billion kwanza (US$7.4 billion), forcing new borrowing at a time when negotiations are also underway with the World Bank for another US$500 million loan. (macauhub/AO)