Angola is grappling with a surge in loan repayments, forcing the oil-rich nation to allocate all its fiscal revenue to cover salaries and debt servicing, according to Finance Minister Vera Daves de Sousa.
“This year has been highly demanding in terms of debt obligations,” de Sousa shared in a video interview with Angolan magazine Economia & Mercado. The country is facing significant debt service pressures both internationally and domestically, she noted.
Angola is currently in talks with the International Monetary Fund (IMF) regarding a potential new program, following its recent resumption of debt payments to China—its largest creditor—after a three-year moratorium.
The minister stated that Angola’s fiscal revenue is sufficient to meet its debt obligations, but it only covers salaries and debt costs. Additional funding for other expenditures comes from external financing, she added.
The Finance Ministry is actively working to ease the debt burden by exploring options to make early payments, securing favorable loans, and refinancing with cheaper debt. Their objective is to reduce the nation’s debt from its current 74-75% of GDP to around 60% in the medium term, said de Sousa, emphasizing that they aim to manage the debt sustainably and reduce its impact on the national budget.
