China is behind billion dollar debt restructure for Angola, analysts say
- Reprofiling of debts also unlocks US$765 million from IMF for Angolan economy hit by oil price fall and Covid-19
- The two ‘large creditors’ have not been named but they are likely to be Chinese banks
China is believed to be the mystery lender behind a reprofiling of Angola’s loans, helping the Southern African country unlock US$1 billion and a further US$765 million from the International Monetary Fund (IMF).
However, negotiations to restructure a major loan advanced by the China Development Bank remained contentious, according to analysts.
The IMF said Angola – Africa’s second largest oil producer – had “reached agreements on reprofiling selected debt” with two of its big creditors, which were not named, and was “in discussions with them to finalise the operational modalities of these agreements”.
The Angolan economy, in recession for five consecutive years, has been hard hit by the recent drop in oil prices. The resource makes up 95 per cent of exports and two-thirds of government revenue. According to the IMF, Angola’s debt-to-GDP ratio is projected to be 123 per cent at the end of this year.