Recredit, the company created to manage the debt of the Angolan banking system, intends to resolve around three quarters of bank loans that have matured more than 90 days ago, said the chairman of the Board of Directors, Venâncio Leitão, in statements to Angolan newspaper Valor Económico.
Figures disclosed by the company show Angola has bad loans of approximately 300 billion kwanzas (US$1.517 billion), three quarters of which or 225 billion kwanzas (US$1.138 billion) is expected to be resolved by 31 December.
The total value of non-performing loans in the Angolan banking system under the management of Recredit initially valued at 500 billion kwanzas (approximately US$2.528 billion), 200 billion kwanzas of which have already beeen resolved.
Leitão said that Recredit’s job is to help the banking system to bring an end to harmful assets at banks, to allow financial institutions to fulfil their true purpose, once their balance sheets have been cleaned up
Set up in May 2017 by the government, with a market capitalisation equivalent to US$2 billion, Recredit established its initial priority of renegotiation of debt with banks and individuals with which it has agreements to purchase non-performing loans.
“So far we have already solved processes in the order of 200 billion kwanzas, originating at Banco de Poupança e Crédito and other banks,” said the head of Recredit, which uses the criterion of “rigorous evaluation of the actual value of the processes,” in settling the debts.
In addition to the companies through Recredit individuals can also renegotiate loans that they are unable to pay back and so far some 12 procedures for private customers are under consideration. (macauhub)