Luanda now has to obtain from all other official bilateral creditors, namely from China, a debt service treatment that is in line with the agreement with the Paris Club.
Representatives of the Paris Club’s creditor countries confirmed the suspension of payments of Angola’s debt charges for the period from 1 May to 31 December 2020, according to the institution’s statement.
The note reveals that Angola will have to use that money to “mitigate the health, economic and social impact of the covid-19 crisis”. The country has also pledged to seek all other official bilateral creditors to obtain “debt service treatment that is in accordance with the agreed terms sheet” with the Paris Club.
The decision made under the DSSI (Debt Service Suspension Initiative) obliges Angola to obtain from all other official bilateral creditors treatment of the debt service that is in line with the agreement with the Paris Club. At issue is fundamentally China, Angola’s main creditor, which is not part of the Paris Club but is part of the G20 under which the DSSI was adopted.
According to World Bank figures, Angola can save up to 2.6 billion USD with this decision.