Angola’s bilateral and commercial debt to China stood at US$21.5 billion at the end of 2017, according to the prospectus of the US$3 billion issue of Eurobonds placed in London this month.
The 200-page document said that in addition to the debt to China, Angola owed Russian commercial banks US$1.8 billion and Brazil US$1.2 billion, according to Lusa.
“Angola has focused its debt exposure on China, Brazil and Russia and an adverse impact on their economies may have an impact on Angola’s future capacity to increase its loans,” said the prospectus, prepared by the Angolan Finance Ministry, which places total debt to these three countries at US$24.5 billion.
The document points out that since 2006, China has become the “largest single importer of Angolan oil,” in 2017 accounting for 61.6% of Angola’s oil exports, worth US$19.2 billion.
“However, Angola’s dependence on China for such a significant proportion of its trade means that any disruption of stability or economic growth in China or any economic breakdown or political relations between Angola and China could have an adverse effect on the Angolan economy, which in turn may materially and adversely affect Angola’s financial condition,” as well as, “its ability to repay” the Eurobond debt now issued.
The prospectus also says that Angola’s exposure to Brazil in “a significant part” of its bilateral external debt – through the National Bank of Economic and Social Development (BNDES) – “means that any interruption in the economic stability” of that South American country – “may have an adverse effect on Angola’s ability to increase bilateral loans” in the future, as is also the case with Russian commercial banks.
China’s ambassador to Angola, Cui Aimin, announced last January that his country has granted Angola loans worth more than US$60 billion since the two countries established diplomatic relations on 12 January, 1983. (macauhub)