Angola’s debt service exceeds tax revenue in 2018

4 June 2018

Angola’s debt service is expected to exceed tax revenue this year by 16.3%, after totalling 89.7% in 2017, according to projections from the Standard Bank’s economic analysis unit, which called for loan maturities to be extended.

Analysts at the bank, in a report on African markets cited by Portuguese news agency Lusa, said that the pressure on debt service, “reflects an increase in total public debt against Gross Domestic Product (GDP) from 68.6% in 2017 to 70.8% in 2018.” As a percentage of GDP, 34% is debt contracted internally and 34.6% is external debt.

However, Standard Bank’s economic analysis unit acknowledged that the Angolan government is aware of these difficulties and is trying to extend debt repayment terms by renegotiating bilateral agreements.

“The government is raising the maturity profile of domestic debt, which will ease the pressure to serve short-term debt,” they said, noting that “high demand for public debt securities [worth US$3 billion] shows that international investors are confident of President João Lourenço’s reform agenda.” (macauhub)