Analysis of letters of credit in Angola reduces debt by US$2 billion

28 February 2019

Angola’s debt related to imports of goods amounted to about US$5 billion by the end of 2017, the governor of the National Bank of Angola (BNA) revealed on Wednesday in Luanda.

José de Lima Massano, speaking at the opening of the BNA annual conference cycle on International Trade, also revealed that after analysing the legitimacy of foreign exchange operations and checking compliance issues the debt was reduced to around US$3 billion.

The governor pointed out that many payments were made abroad, but that the goods did not always enter Angola, a practice that indicated money laundering, according to the Angop news agency.

Angola, the governor said, uses foreign markets for the acquisition of goods, equipment, and services, which requires alignment with good international practices, but in the past, imports were made without the guarantee of conditions and settlement dates, allowing foreign debt to reach that total by the end of 2017.

The director of the BNA’s Foreign Exchange Control Department reported that the central bank had applied US$1.6 billion in opening letters of credit for the payment of goods imported between September 2018 and 31 January 2019, of which US$923 million have already been settled. (macauhub)