Angolan state bank Banco de Poupança e Crédito (BPC) will increase its capital through a cash injection of 67.5 billion kwanzas (US$405 million) to be obtained from an issue of Treasury Bonds, according to a presidential order.
The order authorises an issue of special treasury bonds in local currency to the for Banco de Poupança e Crédito, “to enable it to fully carry out the mission for which it was created.”
The issue amount, the order said, will be delivered “directly to the BPC, at face value, without discount, as a capital increase, thus enhancing the capital ratios of the bank and enabling the expansion of its lending activities.”
The Chairman of the Bank’s Executive Committee, Zinho Baptista, announced in January that the bank would resume lending to the economy in the first quarter of 2017.
BPC announced in mid-2015 it was spending credit to the economy, explaining the move was due to the reduction of resources due to low oil prices on the international market.
In that period, the state began to collect less revenue from the sale of oil and, because of this, fewer funds have been available to BPC, the largest State bank, to lend to businesses and families. The bank has the highest rate – 23% – of loans that are non-performing or overdue for more than 90 days in the Angolan financial system.
BPC’s shareholders are the Finance Ministry, representing the Angolan State, the Social Security Fund of the Angolan Armed Forces and the National Social Security Institute (INSS). (macauhub)