Angola in Talks With Oil-Importing Partners to Reprofile Debt

LUANDA (Capital Markets in Africa) — Angola, Africa’s second-biggest oil producer, is in talks with some of its crude-importing partners to reprofile its debt and has joined a separate initiative to negotiate the suspension of bilateral debt payments.

The move will help Angola tackle the pressures caused by the coronavirus pandemic, the recent drop in oil prices and production cuts agreed by the Organization of the Petroleum Exporting Countries. Angola’s government debt is set to reach 132% of gross domestic product this year, according to the International Monetary Fund.

“The ministry of finance is currently in advanced stages of negotiations with some of its oil-importing partners to reprofile financing facilities,” it said in an emailed statement. “The ministry hopes to conclude these negotiations in the very near future and secure mutually advantageous conditions for all involved parties.”

Angola also decided to join the G-20’s debt-suspension initiative in a bid to negotiate the pausing of bilateral debt payments, the finance ministry said. The country joins other African states in seeking relief as a global downturn and domestic measures to contain the coronavirus hit revenue. Nigeria, the continent’s top oil producer, has also been seeking to reschedule debt payments to China and multilateral lenders.

“The debt-service suspension initiative should provide further welcome relief and free up funds for tackling the effect of Covid-19 in Angola over the next few months,” the finance ministry said.

“The ministry of finance currently does not envisage the need to engage in further re-profiling negotiations with creditors beyond those already in progress.

Source: Bloomberg Business News