Angola pays off debt using part of China’s new credit line

11 October 2018

A portion of the US$2 billion credit line opened by the Development Bank of China will be used to “pay off debt to Chinese lenders,” Angola’s finance minister said on Wednesday in Beijing.

Archer Mangueira, who was speaking about agreements signed on Tuesday by the governments of Angola and the People’s Republic of China, said the Angolan authorities intend to repay medium- and long-term debt using the credit line.

Without specifying the interest rate applied under this new credit line or the repayment terms, Mangueira said that this new funding from China is intended for the execution of projects capable of creating income for the country, according to Angolan state news agency Angop.

Mangueira said that several projects have already been identified that will benefit from this US$2 billion credit facility, namely in the construction, energy and water, and industrial sectors, capable of fostering the productive sector, diversifying the economy and changing the public indebtedness of the country.

Figures released by the minister himself at the 3rd summit of the Forum on China-Africa Cooperation in Beijing in September showed that Angola’s debt to China at that time was US$23 billion.

The Finance Minister also welcomed the signing of the agreement to avoid double taxation, which was signed during negotiations between the delegations of Angola and China, to allow Chinese investors to feel more motivated to act in Angola.

“With this agreement, investors will be able to make capital investments without being penalised from a double taxation standpoint in China and Angola,” said Mangueira. (macauhub)