Angola negotiates new loans

24 June 2016

Angola is negotiating about US$1 billion in new loans, including a credit line for food and medicine, the Wall Street Journal reported Thursday.

The newspaper wrote that investment bank Goldman Sachs is to put together a syndicated loan for Angola, which will be partially guaranteed by the World Bank, while Gemcorp Capital LLP, based in London, is negotiating separate funding for Angola to import food, medicine and other essentials.

The Wall Street Journal said that negotiations to obtain financing abroad “are a sign that investors are confident that Angola can overcome its two-year crisis driven by the fall in oil prices.”

Goldman Sachs will now put together a syndicated loan that will involve a US$200 million guarantee for a loan of US$500 to US$600 million.

The credit line set up by Gemcorp, which is intended to meet the country’s needs for essential goods, may total hundreds of millions of dollars, according to the Wall Street Journal. (macauhub/AO)