Angola issues more debt to resolve bad debts in the banking sector

13 March 2018

The Angolan government will issue 50 billion kwanzas (US$233 million) in Treasury Bonds to finance Recredit, a state-owned company with “the specific objective of supporting the recovery of the national banking system, particularly public banks,” according to a presidential order.

This debt issue will have a maturity of 10 years and annual interest of 7.5%, according to the order signed by the President of the Republic, João Lourenço, authorising this issue of Treasury Bonds.

Recredit is negotiating the bad loans of five Angolan commercial banks, savings and loans, Banco Poupança e Crédito, Banco de Comércio e Indústria, Banco Angolano de Investimentos, Banco Keve and Banco de Negócios Internacional.

Figures released by Recredit showed that about 300 billion kwanzas (US$3.177 billion) of the total non-performing loans had been resolved, three quarters of which or 225 billion kwanzas (US$1.138 billion) arfe expected to be resolved by 31 December.

The total value of the Angolan banking system under Recredit’s management was initially estimated at 500 billion kwanzas (about US$2.528 billion), 200 billion kwanzas of which were settled by December last year. (macauhub)