Government of Angola regulates issuance and management of public debt

13 August 2018

The Angolan Finance Ministry has been given the authority to negotiate and sign loan agreements of up to US$10 million under Presidential Decree No. 164/18 of 12 July, the ministry said in a statement posted on its website.

The contracting of loans of more than US$10 million requires express authorisation from the President of the Republic, the statement said.

The Presidential Decree also attributed the negotiation and contracting of the credits necessary to finance the State and the management of credit availability and indebtedness, to the Ministry of Finance through the Public Debt Management Unit (UGD).

The President of the Republic has the right to authorise, by Presidential Decree, the issuance of direct public debt securities, known as Treasury Bonds, issued weekly or monthly, with interest paid semi-annually.

The Regulation on the Issuance and Management of Direct and Indirect Public Debt also establishes that only credit institutions and other specialised entities engaged in financial intermediation may subscribe Treasury Bonds on behalf of third parties.

However, it allows, other institutional investors, such as insurers and pension funds to access the primary market.

The Presidential Decree also sets out that Treasury Bonds can be sold through price of quantity auctions, through a consortium of financial institutions offering limited subscription and directly to the public. (macauhub)