Credit line to support Portuguese companies in Angola available next week

23 April 2015

The credit line of 500 million euros approved by the Portuguese government to support companies with payments withheld in Angola will be available next week, Portuguese daily newspaper Público reported.

The newspaper said that the agreement with the banks that will provide the funds, a maximum of 1.5 million euros per company was scheduled to be signed Thursday.

The companies, to be able to apply for credit, must submit as collateral the amount to be received in local currency, the kwanza, duly deposited in a local institution and with official authorisation for its transfer.

The measure will come into force at a time when Portuguese exports are suffering the impact of the economic crisis in Angola due to a drop in oil prices.

This factor causes not only a reduction of investment and economic activity, but also decreases the amount of available foreign currency, which hinders provision of funds outside the country.

Portuguese exports to Angola, involving nearly 10,000 companies, fell again in February, after the drop recorded in the first month of the year, by around 33 percent year on year to 162.6 million euros (-8.2 percent over January). (macauhub/AO/PT)