The change from negative to positive budget balances is important for the reversal of Angola’s debt levels, the Minister of State for Economic Development said on Friday in Luanda.
Manuel Nunes Júnior said that this trend of reversing budget balances, from deficit to surplus, opens up room for commercial banks to grant more credit to the national economy, according to the Angop news agency.
The minister, who was speaking at the opening of the 9th Banking Forum, under the theme “The reforms and challenges of Angolan banking”, an initiative of the Expansão newspaper, said that the country has taken important steps to return to economic growth, reducing tax deficits.
Nunes Júnior pointed out that there are visible data confirming this trend, such as the fact that 364-day Treasury bill interest rates went from 19.05% in December 2018 to 15.89% at the end of May of 2019.
“The greater the indebtedness of a State, the higher the rate of interest, which reduces the potential for economic growth, by inhibiting credit to the private sector, which is faced with higher rates,” said the Minister of State for Economic Development. (Macauhub)