"The Ministry of Finance clarifies that the financing contract referred to in the article was executed, by Angola, in accordance with the terms and conditions agreed upon until the moment in which the creditors were conditioned by international sanctions imposed on them", it reads in statement sent to Lusa, which comes after a creditor alleged financial default, due to Angola not paying the financing it benefited from, which led to an arbitration process.
At issue is the fact that this creditor was the target of international sanctions but argued that Angola should continue paying the financing, something that the government refused, as the creditor was on this sanctions list.
Angola, the statement reads, "takes very seriously its obligations towards its investors and stakeholders regarding the application of international sanctions, complying with its duties regarding sanctions imposed by the United Nations, as well as with those imposed on it within the scope of the agreements established with its investors and interested parties".
Until now, the Ministry of Finance has refused to reveal which creditor, or group of creditors, was the target of international sanctions and which placed the country in an arbitration process over the debt, the value of which is also not revealed.
In Thursday's article, the Financial Times begins with a mocking question, 'Who are you, creditor? and adds: "We know you exist, because Angola recently used a prospectus for the issuance of almost two billion dollars in debt securities to bury the unfortunate detail that someone accused the country of 'default'."
After several paragraphs on the importance of transparency in relations with creditors, investors and the general public, the article written by Joseph Cotterill recalls the situation in Mozambique in the middle of the last decade, when the hidden debt scandal was revealed, and the subsequent comments of the international community on the need for transparency, to conclude: "We have not learned."
In response to "comments regarding the transparency and sustainability of Angolan debt in an article published today by the Financial Times", the Ministry of Finance recalls that it "has fully disclosed all material information relating to this matter in the Base Prospectus published on the Stock Exchange of London, on 20 December 2024".
The government reiterates its commitment "to national and international creditors as set out in the General State Budget" and ends by showing itself to be "confident in the sustainability of its debt" and saying that it "will continue to implement its debt strategy and its debt reduction plan with focus". economic diversification".
The Finance Ministry's response comes after, in recent days, several articles reported on the increase in Angola's cash flow and liquidity difficulties, materialized, for example, in the postponement of the payment of the increase for public employees, from January to March, and the increase of the debt amount by 728 million dollars, until 2030, a few weeks after an issuance of two billion dollars in exchange for a loan of 400 million dollars, equivalent to 384 million euros.
In November alone, Angola faces a debt payment of 864 million dollars.
Angola will have to pay US$6.2 billion in 2025, representing 5.2 percent of GDP, and US$5.4 billion in 2026, representing 4.2 percent of GDP, compared to US$5. 4 billion paid in 2024, says Fitch Ratings in a recent analysis of the national economy, presenting these amounts as the total debt that will be paid in those years, which includes interest and payments when the loans mature.
