(Ecofin Agency) - Angola is planning to come back on the international debt market after a 3-year support agreement reached with the International Monetary Fund (IMF), Reuters reported on January 29, 2019, citing the state treasurer Vera Daves (photo).
“We are ready to come back on the international debt market because we recently requested the market”, she said.
In May 2018, Angola issued a 10-year $1.75 billion Eurobond at an 8.25% interest rate.
The state treasurer explained that her country’s financing needs are about 3,500 billion kwanzas ($11.32 billion) in 2019 against about 5,000 billion in 2018. She also indicated that only part of their needs would be raised on the international debt market.
In December 2018, the administrative board of the IMF approved a $3.7 billion 3-years support plan for Angola. The plan is notably aimed at stabilizing Angola’s economy and favouring economic growth starting from this year.
The economy of the second largest oil producer in Africa has experienced a serious crisis following the decrease in oil prices in mid-2014. Its currency (the Kwanza) lost 40% of its value in 2018 and it was the second currency with the poorest performance after the Argentinian peso. In addition, its debt has risen and in December 2018, its foreign reserves dropped to $11.1 billion, the lowest level reached in seven years.