Ver Angola

Economy

Economist says debt suspension helps but more is needed to avoid default

The Economist Intelligence Unit (EIU) considered that suspending the payment of Angola's debt to China will help the country, but more financial aid will be needed to avoid a default in the future.

: DW
DW  

"The suspension of debt service to Chinese creditors will give some room for budgetary maneuver, but more suspensions from other creditors, such as the G20 or even private creditors, should be necessary to avoid a financial default 'in the English version ] in the future ", write the experts from the economic analysis unit of the British magazine The Economist.

In a comment on the approval of the third revision of the International Monetary Fund (IMF) program, sent to customers, and to which Lusa had access, the EIU writes that "the World Bank data shows that Angola will have to pay 4.3 billion dollars in 2021 ".

The note adds that "fulfilling these obligations will be challenging, since oil prices, and consequent revenue, remain low, giving rise to the sixth consecutive year of a drop in Gross Domestic Product".

In recent months, the World Bank has been calling on private creditors to participate in measures to suspend debt payments, analysts recall, stressing that, in addition to the issue of lowering the rating in the event of failure to pay the debt to private individuals , "some official creditors are concerned that the suspension of official payments will be directed towards paying private creditors, rather than the funds being directed towards public health spending, to mitigate the effects of the new coronavirus pandemic".

In the note sent to customers, the EIU recalls that it had already planned a debt restructuring agreement with China, which owns almost half of the Angolan external debt, and stresses that "the 6.2 billion dollars that Angola will fail to pay by 2023 they will give more budgetary space and help to avoid a default, due to the sharp drop in oil revenues to pay the debt obligations ".

However, they warn, "Payments in future years will continue to be significant, and further debt relief, or even the restructuring of more debt, is likely to be necessary."

The IMF's board of directors approved in mid-September Angola's request for increased financial assistance, immediately disbursing 1 billion dollars and bringing the total program to almost US $ 4.5 billion.

Permita anúncios no nosso site

×

Parece que está a utilizar um bloqueador de anúncios
Utilizamos a publicidade para podermos oferecer-lhe notícias diariamente.