The government of Angola has approved a special issue of Treasury Bonds worth 27,4 billion kwanzas (US$175.2 million dollars) in order to capitalise Angolan state development bank Banco de Desenvolvimento de Angola (BDA), according to a presidential order.
The special issue, in local currency, has an amortisation period of 24 years and pays an interest rate of 5 percent.
In 2013 the BDA was the seventh largest Angolan bank, among more than 20 operating in the country, but ended that year with equity below the required 10 percent (solvency ratio), forcing the Angolan State, the bank’s sole shareholder, to increase capital from 4 billion kwanzas to 36.1 billion kwanzas.
The chairman of the BDA, Manuel Neto Costa, later said there had been another capital increase of the bank in July 2014, which allowed it to close that year’s accounts with a solvency ratio (ratio of equity and liabilities) of 13.8 percent.
The BDA will now have capital of over 150 billion kwanzas (US$959 million), as envisaged in the new organic statute which came into force in 2014 under the restructuring plan for the bank, which is responsible for over 6 percent of all loans in the country. (macauhub/AO)