Angola’s BPC bank bad debt portfolio may increase

11 November 2019

The percentage of non-performing loans on the balance sheet of Angolan state-owned bank Banco de Poupança e Crédito (BPC) could increase after the completion of an asset quality assessment, the director for Business and Private customers said in an interview with Jornal de Angola.

Completion of the appraisal work could lead to increased credit impairments, said Pedro Nicolau, who recalled that the bank’s default is currently estimated at 73% of a loan portfolio of 1.1 billion kwanzas (about US$2.34 billion).

To recover the outstanding amounts and, therefore improve the quality of the loan portfolio, he said, since 7 November, BPC has been implementing a campaign called Renascer, which offers, among other benefits, a pardon on default interest of up to 100% to private customers.

For companies, he said, the bank “roughly” adopts the same criteria as for the Renascer campaign, seeking to improve credit terms and conditions by adapting them service debt and prevent an increase in credit arrears.

In order to give the state bank liquidity, the State shareholder has injected 328 billion kwanzas (US$697 million) in bonds, with a maturity of 24 years and interest rate of 5.00% per year, over the last five years.

The process of transferring credit to Recredit, an asset management institution, continues, according to Nicolau, and BPC is preparing a number of non-performing loans to be transferred to that entity. (Macauhub)