Angola pays 2014 and 2016 arrears to companies and individuals

10 February 2017

Payment arrears from 2014 and 2016 will be repaid under a strategy approved on Thursday in Luanda by the economic team of the government of Angola.

The Secretary of the Treasury, Mario Ferreira do Nascimento, said at the end of the joint meeting of the Economic Commission and the Commission for the Real Economy of the Council of Ministers that the strategy, which is designed to authorise withdrawals, which were not made due to financial difficulties, prioritises social sectors (education and health) and infrastructure, including ongoing projects under the Public Investment Programme (PIP).

The repayment priorities also include small businesses and individuals, who have payment orders issued in 2014 and 2016 and that as a result of financial difficulties remain in arrears.

The Secretary of State said that this measure will begin to be implemented this month (February) and will ultimately give greater liquidity to companies and, “thus allow them to continue with their investments.”

The settlement of arrears has both a cash and a bond component, “which was necessary to provide liquidity to companies as well as to combat rising prices.”

Ferreira said, however, that small businesses and individuals will not be covered by the payment in cash and Treasury securities.

The Secretary of State said that debts of over 500 million kwanzas (US$3 million) will be paid 30% in cash and the rest in bonds, and all others are left out of this scheme. (macauhub)

MACAUHUB FRENCH