Angolan government wants to settle arrears in two years

29 March 2018

The Angolan government will start to settle its debts to companies in April, particularly civil construction companies and service providers, under a programme that is expected to be concluded within two years, the Angolan Secretary of State for Finance and Treasury said on Wednesday in Luanda.

Vera Daves de Sousa said that the strategy set out to solve the problem once and for all is based on resolving the debt registered in the Integrated System of State Financial Management (SIGFE) between 2014 and 2016 as well as paying contracted debts not registered in the SIGFE during the same period.

The secretary of state said that the debts registered in the SIGFE, between 2014 and 2016, are estimated at 391.145 billion kwanzas (US$1.833 billion) and added that in the first phase of payment of these arrears just 18% of the amount was paid.

The total estimate of arrears not registered in the system exceeds 1 trillion kwanzas (almost US$5 billion), related to more than 1,700 complaints from service providers.

The Secretary of State said that in 2017 debt settlement agreements were signed in the amount of 87.170 million kwanzas (US$408.7 million), which paid arrears to 137 service providers.

He also said that 25% of the total estimate of arrears not recorded in the system corresponds to services that were not rendered or fraud, which is one of the reasons why the debt repayment process takes so long.

In order to settle arrears owed by the State, the Secretary of State clarified that suppliers may still have other mechanisms, in addition to liquidity and securities, such as tax compensation and compensation through credits in public banks. (macauhub)