Angola pays over 18 pct to finance itself over 364 days

12 April 2016

The government of Angola has committed to pay a 18.08 percent interest rate to finance itself over 364 days through the sale of Treasury Bills by the National Bank of Angola (BNA), as state operator, the central bank said.

The BNA said in a statement that in the week of 5 to 8 April it placed in the primary market 26.8 billion kwanzas (US$163.7 million) for maturities of 91, 182 and 364 days, reaching average interest rates 14.94 percent, 16.99 percent and 18.08 percent, respectively.

Last week Treasury bills at maturity of 364 days were placed at an interest rate of 17.85 percent. This week’s rate represents an increase of 23 basis points.

The central bank also placed 13 billion kwanzas (US$79.4 million) in Treasury Bonds at maturities of 2, 3 and 4 years at interest rates of 7.00 percent, 7.25 percent and 7.50 percent, respectively.

The BNA also reported that the average exchange rate for sales of dollars in the primary market determined at the end of the week was 163.703 kwanzas per dollar, a decline of 1.36 percent over the previous week.

The depreciation against the euro was also 1.36%, with the European currency costing 182.905 kwanzas.(macauhub/AO)