In a press release to which Lusa had access, the Board of Directors of the Sovereign Fund of Angola (FSA) confirmed the decapitalization of 1 billion dollars to finance the PIIM (Integrated Plan for Intervention in Municipalities) and an additional decapitalization of 1.5 billion dollars under the presidential decree, of which 1375 million dollars has already been disbursed.
The measure was contemplated within the scope of the transitional measures in response to the impact of covid-19 on the General State Budget (GSB) for 2020, whose revised proposal was discussed this Tuesday in the National Assembly.
According to the presidential decree, published on 9 April, in addition to the revision of the State Budget, several measures were approved to adapt "the current context to the financing structure and the path of public spending".
Among these was the use of FSA assets to obtain additional financial resources for the National Treasury, to the value of 1500 million dollars "through the commitment of a future recapitalisation as soon as public finance conditions permit".
The FSA recorded profits of 234 million dollars in 2019, after two years of losses.
The result is associated with the good performance of the international financial markets where the Fund has invested more than 1789 million dollars on which it recorded potential unrealised gains from debt instruments (bonds) and equity instruments (shares) worth 189 million dollars.
Last year, the FSA had assets of 4587 million dollars and equity of 3669 million dollars, while net investment management costs were 4 million dollars in 2019 and operating costs reached 15 million dollars.
According to the same note, the Board of Directors of the Fund has already completed the process of restructuring and redemption of control of its assets and will henceforth publish quarterly accounts in addition to annual accounts.
