"Non-performing loans have reached alarming levels and those responsible have to be held accountable"

Vera Daves, Angolan Finance Minister, at the opening of the Advisory Council

Vera Daves, Angolan Finance Minister, at the opening of the Advisory Council

  |  MINFIN

The non-performing loans ratio in Angola is above the African average. Data from the banking sector indicates that the volume of bad credit in Angolan banks more than doubled between 2015 and 2018. The numbers were advanced by Finance Minister Vera Daves.

Non-performing loans in Angola rose exponentially, reaching 13.9 percent (2013), 15.1 (2014), 17.3 (2015), 25.4 (2016) and 33.3 (2017). Of the total non-performing loan of 2017, at least 84 percent belongs to the Banco de Poupança e Crédito (BPC) and the remaining 16 percent to other commercial banks.

Thus Angola had, on 2017, 32 per cent, while Ghana had 22 per cent, Nigeria (15), Republic of Congo (12), Kenya (10), Uganda (6), South Africa (3) and Namibia (2).

The recovery of non-performing loans by making debtors accountable will ensure that banks have the liquidity and strategies to re-lend to the economy and participate more effectively in financial inclusion, Finance Minister Vera Daves said today, at the opening of the 11th Advisory Council of the Ministry of Finance, which is taking place in Luanda until next Saturday.

"Non-performing loans have reached alarming levels and those responsible have to be held accountable," she said.

Regarding the advisory board that happens under the motto "Public Finance: Consolidate to Thrive," Vera Daves hopes that the meeting will contribute to fiscal consolidation and improve the performance of public accounts (revenues and expenses).

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