Angola’s domestic and foreign public debt reached US$78.57 billion in 2017, representing 71.04% of the country’s gross domestic product (GDP), the National Bank of Angola (BNA) reported.
The BNA in its Report and Accounts for the past year also noted that domestic debt stood at US$34.83 billion on 31 December or 31.49% of GDP, while external debt amounted to US$43.74 billion or 39.55% of GDP.
The report said total public debt stood over the 60% threshold set by the Southern African Development Community (SADC).
“This change was mainly reflected in the increase in domestic indebtedness to meet the Treasury’s financing needs as a way to compensate for difficulties in revenue collection given the current situation,” the document said.
Analysing both internal and external debt between 2014 and 2017, the National Bank of Angola said the increase of the internal component in 2017 is clear, and the external component reduced its weight by 3.05 percentage points, from 42.60% of GDP in 2016 to 39.55% at the end of last year.
The report said the increase in the weight of domestic debt in GDP had pushed interest rates upward over the past three years as investors demand increasingly higher risk premiums as the debt/GDP ratio increases and the collection of both foreign exchange and domestic currency revenues decreases. (macauhub)