Angola’s Debt to China Estimated at USD 20.1 billion

 

Angola’s debt to China is estimated at USD 20.1 billion, and is the country’s largest creditor, said Finance Minister Vera Daves Friday.

 

Of this amount, USD 10 billion was used to capitalize the Angolan oil company Sonangol and the remaining USD 10.1 billion to finance various investment projects.

 

Speaking at a press conference, Vera Daves said that the issue of China’s financing to Angola has generated a lot of controversy when analyzing the quality of the works carried out by Chinese contractors.

 

However, the minister explained that the quality of the works does not depend on the creditor – Chinese banks – but on the Angolan State that must inspect them, and on the contractors.

 

Vera Daves said that upon payment, the paying bank is based only on the invoices presented on the execution of the works. The bill is paid in China and the money does not circulate in the Angolan economy.

 

“There is always a very strong debate about deliverables, the quality of the works. This does not depend on the financier but on the relationship between the Angolan State and the contractors”, she said, explaining that the financing entity, which is a bank, focuses on the invoices and not on the walls.

 

As for the debt service with China for 2020, standing at USD 2. 678 million, the minister said that the amortizations represent 78.8%, that is 2,103, while interest represents 21.2% (567 million).

 

She explained that the debt with China is commercial and is paid in deadlines of up to eight years, unlike that with the IMF, which allows negotiation of interest rates and repayment terms.

 

Angola is to get an additional USD 765 million from the International Monetary Fund (IMF), to assist in dealing with economic and health crises, compounded by the decline in oil prices due to the country´s dependence on oil exports.

 

 

Photo: Angolan Finance minister, Vera Daves

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