In terms of domestic debt, Treasury Bonds will be the primary source of financing, with priority given to medium and long-term issuances, with the guiding principle being to mitigate the concentration of debt service over time.
The PAE 2025, approved by Presidential Decree, is the document that materializes the Executive's financing strategy, taking into account internal and external sources of financing, considering a level of debt within the limits considered sustainable, says the Executive in a statement to which VerAngola had access.
The debt strategy for 2025 results from the maintenance, deepening and improvement of the purposes outlined in 2024, aiming to prioritize the contracting of instruments that assist in the active management of liabilities.
The objectives also include the promotion and reduction of bonds indexed to the exchange rate, improvement of the maturity profile of public debt and promotion of reference issuances (Benchmark bonds).
Likewise, the intention is to promote the secondary market for public debt, to attract external financing with concessional characteristics, as well as transparency and communication with the international and national markets.
The granting of public guarantees is limited to the amount of 1.4 billion, according to the General State Budget Law for the Economic Year 2025.
It is estimated that government debt service will total around 13.2 billion kwanzas, of which around 69 percent corresponds to external debt service (9.1 billion) and 31 percent to domestic debt service (4 billion).
The stock of government debt in 2025 could be 57.4 billion kwanzas, and the debt to Gross Domestic Product (GDP) ratio around 63 percent.
The PAE 2025 also foresees a positive net debt of 2.3 billion kwanzas, which results from the increase in the stock of domestic debt in the order of 1.1 billion and the stock of external debt that will be around the same amount.
The document states that taking into account market conditions and the debt management strategy, the limits of domestic and external financing can be traded between each other, respecting the financing limit defined in the OGE.
