Angola’s public debt increases by 14.45% in 2018 to more than US$85 billion

9 May 2019

Angola’s public debt reached US$85.20732 billion or 79.66% of the Gross Domestic Product (GDP) at the end of 2018, an increase of 14.45% over the amount recorded in 2017, according to the National Bank of Angola (BNA).

The central bank said in its Annual Report and Accounts for the 2018 financial year that public debt as a percentage of GDP was above the Southern African Development Community (SADC) benchmark target and ceiling set in the Macroeconomic Stability Programme, which is 60% of GDP.

Domestic debt, which is mainly made up of Treasury bonds, declined when calculated in dollars, from US$35.91349 billion (29.41% of GDP) in 2017 to US$33.78142 billion (31.58% of GDP) by 2018.

External public debt increased by 33.44% year-on-year to US$51.42590 billion or 48.08% of GDP compared to US$38.53839 billion at the end of 2017.

The National Bank of Angola said in the document that the increase in the public debt ratio was the result of issuing Eurobonds in May 2018 in the amount of US$3 billion and the IMF Extended Fund Facility which, in December, immediately made US$990.7 million (out of a total of US$ 3.7 billion) available.

The central bank noted that demand for Angolan Eurobonds exceeded the amount offered due to high coupon interest rates, of 8.25% to the issue of US$1.75 billion for a 10-year maturity and 9.375% for US$1.25 billion for 30 years.

However, there has been a decline in rates throughout the year mainly due to changes in the price of oil compared to 2017, the agreement signed with the IMF and improvement of the credit rating issued by the main agencies, from a negative outlook in 2017 to positive in 2018. (Macauhub)