Bad loans increase in Angola over the last three years

3 August 2017

Failure to pay loans has been increasing in Angola over the last three years due to the country’s macroeconomic environment, the president of asset management company Recredit – Gestão de Activos said on Wednesday in Luanda.

Recredit, founded on 11 June, 2016, in which the rights and obligations of the State, as a shareholder, are exercised by the Ministry of Finance, has been involved in the acquisition of bad loans from public banks, and can acquire problematic loans from all banks in Angola, provided they are related to processes focused on the Angolan economy.

The chairman of the company, Vicente Leitão, said in a meeting with the trade press that Recredit is not a “bad bank”, which is to say, it does not buy assets to sell, but rather to recover them in terms that are of the interest to the national economy and not just of financial interest.

Leitão said that Recredit is in the process of negotiating the loans of five commercial banks: Banco de Poupança e Crédito, Banco de Comércio e Indústria, Banco Angolano de Investimentos, Banco Keve and Banco de Negócios Internacional.

The chief executive Filipe Duarte, asked about the mechanisms to be adopted in the process of charging borrowers, said that the company will always try to negotiate a solution with the borrowers, given that they end up owing to Recredit once their loan is transferred.

This negotiation, executive director Angélica Paquete said, is intended to asses the project in question, determining if an additional investment could make it feasible and whether Recredit will intervene directly or indirectly in its management. (macauhub)