The Angolan President authorised the issuance of 656.1 billion kwanzas (US$3.05 billion) in public debt in the form of Treasury Bonds to settle arrears related to the execution of State Budgets for 2011, 2012, 2013, 2014, 2015, 2016 and 2017, according to a presidential order.

The order stipulates that this is a special issue of National Currency Treasury Bonds (OTMN), with redemption periods of between four and 14 semesters, to be used for the conversion, “after validation” by the Ministry of Finance, of arrears related to budgetary execution.

The document also authorises the Minister of Finance to establish, by executive order, the interest rate to be paid per coupon and the terms and repayment of the Treasury Bonds.

The Macroeconomic Stabilisation Program (PEM), a document prepared by the Angolan government, which stipulates 109 tax, foreign exchange and monetary policy measures this year, as well as guaranteeing a more solid financial sector, said that arrears to state suppliers total almost US$5 billion, which were accumulated between 2014 and 2016, as a result of the drop in oil prices.

The PEM also warns that companies in the public business sector have significant arrears with suppliers, notably oil company Sonangol, power company ENDE and airline TAAG, which has a significant “impact on the sustainability of these companies.” (macauhub)