The PAE, approved in Presidential Decree No. 02/24 and consulted this Thursday by Lusa, states that 6.1 billion kwanzas must be raised through the external market and the remainder in the domestic market.
According to the order, signed by the President, João Lourenço, and already published in Diário da República, the PAE materializes the OGE 2024 financing strategy, "taking into account internal and external financing sources, as well as the limits of the debt level considered sustainable".
This legal instrument should prioritize the contracting of instruments that assist the active management of liabilities, promote the elimination of securities indexed to the exchange rate, improve the maturity profile of public debt, encourage benchmark issues (Benchmark bonds) and promote the secondary market of public debt.
The 2024 OGE, which sets expenses and estimates global revenues valued at 24.7 billion kwanzas, began to be implemented on January 1, 2024.
At least 57.8 percent of total Budget expenditure for the 2024 economic year, estimated at 14.3 billion kwanzas, will be allocated to servicing public debt, both internal and external.
According to the PAE, around 81 percent of the Angolan government debt stock "is exposed to exchange rate risk, namely Treasury Bonds (OT) in national currency indexed to the exchange rate, OT in foreign currency, Loan with local banks in dollars and euros and the entire stock of external debt".
João Lourenço, in another decree, also authorizes the Minister of Finance to resort to issuing OT "with the characteristics and conditions" provided for in OGE 2024 to cover financing needs arising from public investments.
The placement of OTs can be carried out directly with financial institutions, through quantity or price auctions; through a consortium of financial institutions; through limited subscription and directly with the public, the diploma is determined.
To finance the 2024 OGE, the Minister of Finance is also authorized to resort to issuing Treasury Bills (BT).
The diploma is approved due to the need to "expand" the participation of financial institutions established in Angola in the financing process for OGE 2024, "through the subscription of Treasury Bills to be issued, especially, for this purpose".
In Presidential Decree no. 01/2024, to which Lusa had access, the rules for implementing OGE 2024 were approved, determining that all State revenues, including customs revenues, those resulting from the sale of the real estate assets and furniture of the State, fees and similar revenues must be collected via the Single State Payment Reference (RUPE), in the Single Treasury Account, "regardless of whether or not they are allocated to any budgetary unit".
Budgetary units "are not authorized to open and maintain bank accounts in their own name domiciled in commercial banks without having been authorized by the Minister of Finance, based on the reasons presented by them", it is also highlighted in the document signed by João Lourenço.
