Angolan government to pay more than US$360 million in arrears by March 2020

31 December 2019

The government of Angola will pay 179 billion kwanzas (more than US$360 million) in unsettled debts to companies that supplied goods and services to the State between 2013 and 2017 by the end of March 2020, according to a guarantee included in the “Annual Report on the Strategy to Settle Arrears.”

The report published last week on the website of the Ministry of Finance estimates that arrears totalled 1.24 trillion kwanzas (US$2.54 billion) at the beginning of the year, with an amount of 393.61 billion (more than US$800 million) paid by the end of November 2019.

The figures were split among 314 debt settlement agreements established between the Ministry of Finance and creditors, in the amount of 335.54 billion kwanzas (about US$690 million), as well as the payment of Withdrawal Notices from previous years registered in the Integrated Financial Management System (SIGFE), in the value of 58.07 billion kwanzas (just over US$119 million).

A total of 195 agreements were fully paid in cash, 68 in Non-Readjustable Treasury Bonds (OT-NR), two via tax compensation, as well as 49 as a combination of all three systems.

Under the strategy to settle arrears agreements were paid until November in public securities in the amount of 214.09 billion kwanzas (about US$439 million) and another 101.57 billion kwanzas (US$208 million dollars) in cash.

The programme forecasts that, in 2020, there will be a settlement of a total amount of some 250 billion kwanzas (more than US$510 million), and in 2021, the target year for the total elimination of State arrears, an estimated 556.39 billion kwanzas (approximately US$1.14 billion) in arrears will be paid.

The document said the total amount paid, 15.98%, relates to arrears registered in the SIGFE and 84.02% to debt that is not registered.

The Strategy to Settle Arrears 2013-17 was drawn up with the aim of paying off all outstanding debt contracted during this period by the State from suppliers of goods and services by 2021. (macauhub)