Publicly-owned company Recredit will support Angolan banks in recovering bad loans, said the country’s finance minister, while presenting the new institution to public and private entities in the Angolan financial sector.
“This new institution will assist the national banking sector in the area of credit granted, freeing it from processes that are at a standstill and hampering its performance when called upon to carry out one of its main missions, to grant credit to the economy,” said Archer Mangueira.
The minister of Finance stressed that in the first instance, Recredit will focus on the acquisition of bad loans from public banks, and will be open to taking on problematic loans from all banks operating in Angola.
Recredit is authorised, according to the minister, to create funds to support the recovery of the national economy, as well as to use and manage other financial instruments that enhance its corporate purpose.
“We want this company, owned by the State, to become a healthy vehicle for regeneration of our economic structure,” said the finance minister.
Recredit is fully owned by the State, with the powers and obligations of the State exercised by the Ministry of Finance, and was set up as part of the recovery process of Banco de Poupança e Crédito. Last December, by presidential order, Recredit’s jurisdiction was extended to the entire Angolan banking sector.
Credit in arrears or overdue for more than 90 days in Angolan banks reached 355.6 billion kwanzas (US$2.132 billion) in 2015, according to a report from Deloitte presented last November in Luanda. (macauhub)