Angola needs $10 billion of foreign debt

The country is planning to raise $10 billion of foreign debt this year.

Angola is planning to raise $10 billion of foreign debt in 2015, as it needs to make up for the fall in price oils over recent months.


It will issue a new Eurobond of $1.5 billion or more and a $1 billion line of credit from the World Bank.


Luanda also hopes to borrow part of the total $10 billion from China, already one of its main commercial partners and creditors. It lent Angola 14.5 billion last year.


Crude oil prices have nearly halved since last June. The decrease has been felt the most in Angola, where oil accounts for 95 per cent of exports and accounted for 70 per cent of tax revenue, according to Medafricatimes.com.


Growth forecasts are mixed, with planning Minister Joe Graca announcing a 6.6 per cent growth, while some economists believe it could be half of that - below last year’s four per cent growth.


Mr Graca believes the oil sector will expand by nearly 10 per cent, even though some analysts expect the price of crude oil to go as low as $10 a barrel. The Angolan inflation will be between seven and nine per cent.