This Tuesday, in Luanda, the director of the Public Debt Management Unit of the Ministry of Finance, Angélica Paquete (Photo), has declared that Angola plans to issue public debt of $20 billion this year to private investorswith an interest rate of up to 7%. In 2015 the first debt issue will be carried out in the international market, with the support of financial partners in the sector.
According to Angélica Paquete, who spoke at the presentation of the 2015 Annual Debt Plan, this amount his needed “to ensure the financing of the 2015 State Budget, distributed equally between domestic and international markets”. The Angolan market has sufficient liquidity for placement of debt issues planned for 2015 and Angola’s financial and economic situation is significantly positive in the medium and long term, thus compensating the uncertainty we are linving in the short term.
“In the fiscal year of 2015 we have introduced the possibility of private or collective investors gaining access to the primary market,”declared the Director. Private investors can take on Treasury Bills, with shorter maturities and interest rates ranging from 4.5% (91 days) and 6% (364 days) for a total amount to be allotted by the State equivalent to 402 billion kwanza (US$3.8 billion). They will also have access via the National Bank of Angola to Treasury Bonds with maturities of 2-5 years and a 7% interest rate, presented by the Government as “One of the highest returns in the world on this type of financial product”.