Angola negotiates the end of oil-backed debt with China

23 January 2020

The government of Angola is negotiating with its Chinese counterpart to end the use of oil as a guarantee for bilateral debt, said in London, the Angolan Minister of State for Economic Coordination, Manuel Nunes Júnior.

“All the debt with China has oil as collateral. We also had a debt with these characteristics with Brazil and with Israel. With the reforms that we are implementing, this guarantee will become increasingly unnecessary,” said Nunes Júnior, after a speech at the Royal Institute of International Relations, at Chatham House.

The minister, quoted by Portuguese news agency Lusa, said the debt to Brazil that was backed by oil no longer exists and he added that the Angolan government is currently negotiating with Israel to do the same.

The minister, who was in London to represent President João Lourenço at the first UK-Africa Investment Summit, on Monday, spoke after a lecture entitled “Angola and commitment to the economy: Evaluation of the progress of privatisations and other economic reforms.”

Nunes Júnior noted the result of other economic reforms introduced, including, for the second consecutive year, a positive budget balance in 2019, according to preliminary data, and an expected surplus of 1.2% of Gross Domestic Product (GDP) in 2020. (macauhub)