Angola issues debt to pay arrears from 2013

8 February 2017

Angola will issue Treasury Bonds in national currency in the amount of 402.750 million kwanzas (US$2.415 billion) to pay for public spending in arrears since late 2013, under a presidential decree.

The issue is the responsibility of the National Bank of Angola and the finance minister has yet to establish the face value and interest rate and repayment period, which will be between four to 14 semesters.

“The coupon interest is payable semi-annually in the issuing currency [Angolan kwanza] at the date of maturity,” the decree said, quoted by Portuguese news agency Lusa.

The director of the Debt Management Unit, Osvaldo João, presenting the Annual Debt Plan of the Angolan State for 2017 recently in Luanda, said this year’s gross financing needs totalled 4.667 trillion kwanzas (US$27.9 billion), particularly to finance the State Budget (OGE), which will have a deficit once again this year.

João also said that national banks will be critical to achieving this objective, as 75% [of the debt] will come from the domestic market, and most will be raised by issuing Treasury securities, “of which banks are largest holders.” (macauhub)