President of Angola orders evaluation of public banks

9 January 2018

The shareholdings held by the Angolan state or public companies in national and foreign banking institutions will be evaluated by a working group led by Finance Minister Archer Mangueira under an order signed by President João Lourenço.

The order also stipulates that the working group will have 45 days to carry out an “appraisal diagnosis” of Angolan public financial banking institutions and to “define a methodology for restructuring” them.

The Angolan State, through oil company Sonangol, has holdings in several national and foreign banks, including Portugal’s largest private bank Banco Comercial Português (BCP), in which it holds a stake of 14.87% with a potential loss of 365.7 million euros, according to Portuguese state news agency Lusa.

The working group includes the Secretary for Economic Affairs of the President of the Republic, the Secretary of State for Finance and the Treasury and a deputy governor of the National Bank of Angola.

In the meetings of this group, the presidents of the Capital Markets Commission, the Angola Debt and Stock Exchange, state-owned company Recredit and Banco de Desenvolvimento de Angola (BDA), Banco de Poupança e Crédito (BPC) and Banco de Comércio e Indústria (BCI).

Angolan public company Recredit announced in August 2017 that it expects to extend the purchase of bad credit to four other commercial banks – Banco de Comércio e Indústria (BCI), Banco Angolano de Investimentos (BAI), Banco Keve and Banco de Negócios Internacional (BNI) – after agreeing to purchase the debts of state-owned bank Banco de Poupança e Crédito (BPC). (macauhub)