Banco Económico increases capital to comply with the recommendation of the Angolan central bank

7 January 2020

Angolan bank Banco Económico (BE) plans by the end of June to carry out the capital increase approved at its General Shareholders’ Meeting held in August 2019, the bank said in a statement issued on Monday in Luanda.

The decision is in line with the main conclusions issued by the National Bank of Angola within the Asset Quality Assesment (AQA) process, which instructed the BE to carry out the capital increase.

The Banco Económico General Meeting discussed the need for increasing capital beyond the level confirmed by the AQA, dated 31 December 2018.

This capitalisation will make it possible to accommodate the deviations resulting from impairments identified in the AQA.

The AQA concluded that Banco Economico (BE), Banco de Poupança e Crédito (BPC) accounted for approximately 96% of the current legal minimum capitalisation requirements, on 31 December 2018.

Banco Económico, which inherited the assets of the bankrupt Banco Espirito Santo Angola, has as shareholders Lektron Capital (30.98%), Geni Novas Tecnologias (19.90%), Sonangol (16.00%), Sonangol Vida (16.00%), Novo Banco (9.72%) and Sonangol Holding (7.40%). (macauhub)