President of Angola will be able to issue state guarantees of up to almost US$5.3 billion

President of Angola will be able to issue state guarantees of up to almost US$5.3 billion

2015 / 11 / 19

The President of Angola will be able to authorise government guarantees of up to 719 billion kwanzas (US$5.287 billion), according to the proposal of the State Budget Law for 2016, under discussion in parliament.

The proposed State Budget for 2016 states that the President of the Republic, as holder of executive power, “is authorised to grant state guarantees to domestic economic operators”, for the development of projects to meet the objectives of the National Planning Instrument and the 2016 general state budget.”

This is an increase of 190 percent over the document taken to the Angolan parliament exactly a year ago (OGE for 2015), which was the subject of a review in March due to the fall in revenues from oil exports.

In the State Budget for 2015 and for the same purposes, the President could authorise government guarantees up to 247.750 billion kwanzas (US$1.822 billion at the current exchange rate).

At the end of 2013, the Angolan President signed a state guarantee of over 3 billion euros for loans granted by Banco Espírito Santo to BES Angola, which was then cancelled in August 2014, following the intervention of the National Bank of Angola that transformed the former BESA into Banco Económico. (macauhub/AO)