"This year, we will go to the markets to issue Eurobonds (debt securities in foreign currency)," revealed José de Lima Massano in an interview with the financial information agency Bloomberg in Davos, where the World Economic Forum is taking place, saying that "it will be no different" from what has been done before.
"1 billion dollars," he said, but admitted that "it could go up to 2 billion dollars".
Sub-Saharan Africa's second-largest oil producer will present the proposal to investors this quarter, the former central bank governor added, noting that the debt issuance would depend on market conditions.
The prices and maturities of the issues are "critical, so that there is no additional pressure on the public debt," Massano said, adding: "I just hope that inflation continues on the downward trajectory so that we can have more access to funds."
In November alone, Angola will have to pay 864 million dollars in debt, an example of the debt burden it will have to face this year and next.
Angola is one of the African countries that spends more money paying interest on its debt than investing in education and health, says the United Nations Department of Economic and Social Affairs (UNDESA).
"In several of Africa's largest and most populous economies, including Angola, Egypt, Ghana, Nigeria and Uganda, debt interest payments have exceeded total spending on education and health in recent years, highlighting the difficult policy choices governments face", reads the report on the Economic Situation and Prospects to 2025, released by the United Nations earlier this month.
Some of these countries, including Angola, have to spend more than 25 percent of their revenue to service debt interest, reads the report, released at the same time that an analysis by the non-governmental organization Debt Justice points to Angola as the country in the world where a higher percentage of revenue (66 percent) is used to pay off debt.
Angola will have to pay 6.2 billion dollars in 2025, representing 5.2 percent of GDP, and 5.4 billion dollars in 2026, representing 4.2 percent of GDP, compared to 5.4 billion dollars paid in 2024, says Fitch Ratings in a recent analysis of the Angolan economy, presenting these values as the total debt that will be paid in those years, which includes interest and payments upon maturity of loans.
In December, Angola signed agreements with investment bank JPMorgan Chase worth 1 billion dollars that will finance this year's budget, including infrastructure projects to increase water, electricity and hospital supplies, Lima Massano said.
In the interview with Bloomberg, he acknowledged that the country is facing difficulties in terms of debt payments, but highlighted that the debt-to-GDP ratio has fallen to 60 percent to 65 percent.
"We are trying as much as possible to extend maturities", said the minister, adding that although the country is following the International Monetary Fund (IMF) guidelines regarding resource management, it will not need another financing program.
The minister recalled that Angola's economy grew "slightly above 4 percent" last year, the same figure predicted for this year, based on sectors outside of oil and the privatization program.
