An analyst for credit rating agency Moody’s Corp’s Global Financial Risk Unit thinks the Moody’s rating for Angola will be unimpaired by any debt relief China may be about give the country, Lusa reports.
The Portuguese news agency quotes the analyst, Aurelien Mali, as saying on Sunday Chinese financial aid to Angola is a matter for the Angolan and Chinese states, and backed by the Chinese state even when given by Chinese state-owned banks.
The report says Angola owed China US$28.6 billion at the end of last year.
The drop in global prices for crude oil, coupled with a fall in tax revenue and a rise in spending on healthcare due to the Covid-19 pandemic, which together unbalanced the Angolan government budget, compels Angola to ask for debt relief, Lusa quotes Mr Mali as saying.
(Source) Permanent Secretariat to the Forum for Economic and Trade Co-operation between China and Portuguese-speaking Countries (Macao):