Angola plans to stop guaranteeing loans with oil

28 March 2019

Angola wants to stop using oil to back credit lines opened in its favour by other countries, particularly China, Brazil and Israel, said President João Lourenço.

The Angolan president mentioned, in particular, the case of China, given that the country has received many billions of dollars in loans from Chinese banks for the reconstruction of the country, after the end of the civil war.

“The amount of oil we exported to China was equivalent to our debt to the country,” said Lourenço speaking to Russian news agency TASS.

Lourenço stressed that China’s loan repayment system is outdated and added that the government intends to change it.

“This change will happen not only with China but also with other countries with which we have the same way of repaying loans, such as Brazil and Israel,” he said.

Lourenço concluded his statements to the news agency saying “we will stop the use of oil as a guarantee for the payment of credit lines.”

The Chinese ambassador to Angola wrote in a text published in daily newspaper Jornal de Angola that his country had granted Angola loans totalling over US$60 billion since the two countries established diplomatic relations on 12 January 1983.

Angolan Finance Minister Archer Mangueira reported in September 2018 in Beijing that Angola owed China US$23 billion. (Macauhub)