The Angolan Ministry of Finance restated its commitment to service both domestic and external debts, “an objective that is included in the proposal of the General State Budget for 2018 and is supported by the current state treasury levels,” according to an official statement.
In a statement announcing Moody’s decision to place Angola’s sovereign risk rating on credit watch, the ministry noted that this decision was due to the deterioration of the fiscal position, including increased gross financing requirements related to the expectations that led to a sovereign risk rating of “B2” in October 2017, as well as rapid exchange rate depreciation due to the introduction of the new exchange rate regime.
The Ministry of Finance added in the document that Moody’s believes in the Angolan government’s fiscal consolidation plan and the benefits of the introduction of the new floating exchange rate system.
Angola’s sovereign debt stands at 12.2 trillion kwanzas (US$58.126 billion), or 67% of the Gross Domestic Product (GDP), with foreign debt representing US$38.06 billion, according to figures from the Ministry of Finance.
The ministry issued another statement noting that Standard & Poor’s (S&P) on Friday had reassessed Angola’s risk rating, keeping it at “B- / B,” with a stable outlook.
According to the statement, S&P focused on the sharp increase in Angola’s public debt in 2017, with is expected to continue in 2018 as a result of considerable fiscal deficits and currency devaluation. (macauhub)