Angop - Agência de Notícias Angola Press

China broadens financing to Angola

Wed, 10 Oct 2018 10:31 - Politics

Beijing - The republics of Angola and China signed last Tuesday, in Beijing, signed an agreement that outlines a financing from the Chinese Development Bank estimated at USD 2 million.

  • China: Angolan President João Lourenço (left) and Chinese counterpart, Xi Jinping.
  • China and Angola sign new financial agreement

ANGOP has learnt that this credit line is to be used in the construction and conclusion of various infrastructures in Angola.

The agreement was signed by the Angolan Finance Ministry and the Chinese Development Bank, in the ambit of the visit of the state visit of President João Lourenço to the Asian country, which is to end this Wednesday.

Angola has been struggling to overcome a strong economic crisis that began in 2014 due to the steep fall, in the international market, of the price of crude-oil  (country’s main exporting commodity).

The country has recorded a significant decrease in its revenues, which caused the Angolan government to approve, in 2018, a General Budget with a GDP deficit of 2.9 per cent, with most of the revenue being used to pay the public debt.

China, deemed the main financier of Angolan infrastructures, granted its first credit line to Angola in 2002.

According to official data, Angola’s debt to China is currently of about USD 23 million.     

The Angolan Head of State, João Lourenço, is ending this Wednesday his state visit to China, after holding top level contacts with the Chinese political authorities and entrepreneurs, which culminated with the signing of several co-operation agreements.

President João Lourenço is due back in the country on Thursday.