Non-performing debt in Angola accounts for 1/3 of all loans

16 April 2018

Loans in arrears or overdue for more than 90 days in Angola’s banking system accounted for 31.3% of all loans granted in February, which means that one in three kwanzas borrowed by banks may not be paid back, according to the report of Financial System Indicators of the National Bank of Angola for February.

The Angolan central bank’s Monetary Statistics report said that the total amount of credit granted was 4.8 billion kwanzas (US$22 billion), so bad loans stood at 1.5 billion kwanzas in February (US$6.878 billion).

Calculations by Angolan newspaper Expansão showed that total non-performing loans in the financial system is equivalent to three times the value that the State has already spent to bail out Banco de Poupança e Crédito (BPC), the largest bank in the country.

Four interventions in the BPC, in less than two years, have cost the State 568.8 billion kwanzas (US$3.186 billion).

The newspaper quotes experts who argue that a “bad payer State” has aggravated borrowers’ difficulties with meeting payments and repaying loans.

Credit rating agency Moody’s warned in a report published on 27 March of the high rate of non-performing loans of Angolan banks, adding that in November they were the equivalent of 28.5% of gross loans. (macauhub)