Angola’s BPC tightens criteria for granting credit to companies and individuals

20 February 2017

Angolan bank Banco de Poupança e Crédito (BPC) will adopt stricter rules in the process for granting loans to both companies and individuals, the bank’s chief executive announced last week in Paris.

Zinho Baptista told the Angolan news agency Angop that the adoption of stricter rules makes borrowers more accountable, “to use it the proper way” and added that the bank will start granting loans again soon.

The BPC CEO, who was part of a delegation to teh French capital led by the governor of the National Bank of Angola, said that as soon as the work is completed “we will announce the criteria that the BPC has designed for citizens and companies to access to bank loans.”

State bank BPC, the largest commercial bank in Angola, will have its capital increased through an injection of 67.5 billion kwanzas (US$405 million) in fresh cash to be obtained by issuing Treasury Bonds.

BPC announced in mid-2015 it was suspending 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 were available to the 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)