Angola
Unrepaid Dos Santos era loans risk becoming an economic fragmentation bomb

Former President José Eduardo dos Santos created the public company Recredit in 2016 to take care of the toxic claims of the PCB.
Former President José Eduardo dos Santos created the public company Recredit in 2016 to take care of the toxic claims of the PCB. © Herculano Coroado Bumba/Reuters
Choked as it is by the fall in oil prices, Angola is already dangerously exposed to the risk of being unable to reimburse its private debt. Its finances have been complicated by another problem, however. The advantageous and as yet not clearly quantified loans granted by the BPC during the Dos Santos era are imposing a burden on the budget of the State. [...]
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Angola
"Bad bank" Recredit gets generous Treasury funding but no change from its debtors

The Angolan authorities, who are keen to demonstrate that the era of easy loans for regime notables is over, have given a glowing account of the performance of bad loans management company Recredit. The latter's success is not what it seems, however: its balance sheet is largely funded by the state rather than by its debtors.

LogoSubscribers only Finance, Business 22.09.2020

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