Africa Monitor Intelligence

Angola: ICBC Delays Signing of Agreement with China on Debt

Despite the recent indications given by MinFin that negotiations with China would be practically concluded, these have seen uneven progress: while an agreement in principle has been reached regarding the EximBank and China Development Bank (BDC) credit lines, in the amount above USD 6 billion (less than 1/3 of the debt to China, currently estimated at USD 20 billion), negotiations continue with ICBC bank.
Of the total loans granted by China to Angola, paid or guaranteed by oil supply, most (USD 15 billion line from the CDB) have terms of remuneration that incorporate variations in the price of Brent oil - valuing when the price goes up in international markets and vice versa (AM 1241).
Of the total debt owed to China, half, c. USD 10 billion is owed by Sonangol, with the remainder being financed by reconstruction projects. Debt service with China in 2020 is USD 2,678 million, 78.8% repayments (USD 2,103 million) and the remainder interest (USD 567 million). READ MORE