Quality of Angolan bank assets to be evaluated in April

30 January 2019

The quality of the assets of the commercial banks operating in Angola will begin to be evaluated by the National Bank of Angola (BNA) from April this year, to assess the financial health of the country’s banks, the governor of the central bank said on Tuesday in Luanda.

The assessment of bank assets, which is part of the recommendations of the International Monetary Fund (IMF), under an agreement signed with the Angolan government, will focus mainly on the credit granted by commercial banks to get a real picture of the Angolan banking sector, according to Angolan state news agency Angop.

Governor José de Lima Massano, who was speaking at a talk on measures to support the increase in national production, promoted by the Ministry of Economy and Planning, said that this exercise may lead to some banks having to increase their capital and, possibly, to bank mergers or closures.

The governor noted that the BNA will adopt measures to end credit in domestic currency indexed to foreign currency due to the perverse effects that any foreign exchange adjustment may cause to borrowers and said that the central bank will setup specialised financial institutions to help manage the bad credit portfolio, estimated at 31% of total credit granted in the country.

He also pointed out that the National Bank of Angola will help raise funds to support the Programme to Support National Production, Diversification of Exports and Substitution of Imports (Prodesi).

The governor recalled that, as part of measures to support the increase in domestic production, the BNA had recently decided to lower the interest rate from 16.5% to 15.75%, in order to facilitate credit to the economy. (macauhub)