Angola owes US $ 20.1 billion to China - Plataforma Media

Angola owes US $ 20.1 billion to China

The real value of Angola’s debt to China is estimated at US $ 20.1 billion, and is the country’s largest creditor. The accounts were presented by the Angolan finance minister, Vera Daves.

Of this amount, 10 billion dollars went to the capitalization of Angolan oil company Sonangol and 10.1 billion went to finance several investment projects.

In a press conference, the head of the Finance portfolio said that the issue of China’s financing to Angola has generated a lot of controversy when analyzing the quality of the works carried out by Chinese contractors.

However, he explained that the quality of the works does not depend on the creditor, who are Chinese banks, but on the Angolan State, which must supervise them, and on the contractors who execute them.

Vera Daves affirmed that in the act of payment the paying bank is based only on the invoices presented on the execution of the works. The bill is paid in China and the money does not circulate in the Angolan economy.

“There is always a very strong debate about deliverables, the quality of the works, this does not depend on the financier, but on the relationship between the Angolan State and the contractors”, he said, explaining that the financing entity, which is a bank, looks at the bills and not to the walls.

In relation to debt service with China, for this year 2020, valued at 2.678 million, amortizations represent 78.8%, that is 2.103, while interest represents 21.2% (567 million).

This article is available in: Português

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