Angola takes on debt of US$11.46 billion since November 2015

12 July 2016

The government of Angola has taken on foreign debt amounting to US$11.46 billion since November 2015, said Monday the Ministry of Finance in a statement published in Luanda.

This new debt includes a credit line from the China Development Bank (US$5 billion), export credit facilities with various Chinese financial institutions (US$1.98 billion) and credit facilities for exporters with contributions for for insuring export credit agencies (US$1.18 billion).

It is also necessary to add, according to the statement, other credit facilities in the amount of US$3.3 billion, “currently in the final contracting phase” and the internal issue of debt securities amounting to 512.360 billion kwanzas (US$3.070 billion).

The official statement added that the public debt, except for state-owned enterprises amounted at the end of June to US$47.9 billion, of which US$25.5 million were foreign debt and foreign reserves totalled US$24 billion.

“In the next 12 months Angola will have external debt servicing commitments amounting to US$4.4 billion, of which US$3.2 billion in amortization of capital and US$1.1 billion in interest”, said the Ministry of Finance statement.

Angolan public expenditure included in the state budget for 2016 is expected to total US$24 billion by the end of the year, against an initial forecast of US$30 billion, the statement said.

Revenue, meanwhile, is expected to reach about US$18 billion, of which US$8.3 billion is related to oil revenues, against an initial forecast of US$24.4 billion.

The Ministry of Finance said in a statement that the budget deficit is expected to increase from an initial forecast of 5.5% to 6.0% at the end of the year, according to the latest figures.

The growth rate of Angola’s economy this year, according to the ministerial document, will be 1.3%. (macauhub/AO)