Angola: BPC Announces Plans to Lay Off 1,600 Workers

Luanda — Savings and Credit Bank (BPC) plans to lay off 1,600 of the 4,820 workers by 2022, according to the company's CEO, who said that the move is part of Recapitalisation and Restructuring Plan.

António André Lopes, who was speaking at a press conference on Thursday, said that the plan also foresees the closure of 60 bank branches.

According to him, the company intends to make the commercial structure more sustainable accordingly with its role.

To this purpose, the financial institution has prepared an amount of over 18 billion kwanzas for employees' compensation, according to the General Labour Law, plus a reward.

In order to ensure the integration of those workers in economic life, the bank will fund two technical and professional training courses, in addition to credit for performing business in the context of training.

Among the employees the company plans to make redundant include retired people and those who will be encouraged to take early retirement.

On the other hand, António André Lopes said that, in addition to this measure, the BPC, which is experiencing a chronic liquidity crisis, defined a recapitalisation estimated at 748.3 billion kwanzas, in the period from 2020 to 2022.

According to André Lopes, the net result of the financial institution reached a negative value of 404.7 billion kwanzas until December 2019, due to inadequate results of its operation over the last four years.

For this year, in the framework of the Recapitalisation and Restructuring Plan, the Ministry of Finance has already made available 163.7 billion kwanzas in bonds.

While the State Assets and Participations Institute (IGAPE) will make available, in the coming days, 396 billion, of which 15 billion in cash and the rest in bonds.

BPC transferred last Tuesday 80% of its bad debt to Recredit Assets Management, estimated at 951 billion kwanzas, at a fair value of 57.1 billion of kwanzas.

During the press conference, the BPC CEO also spoke of the reinforcement of the security and information system that made it possible, in full, to halt the theft of 434 million kwanzas last April.

He said that 133 million of this amount did not come from the bank. Of the amount transferred by the fraudsters, who have already been identified, 165 million was blocked in the banks where they were sent.

The State is the BPC's shareholder, through the Ministry of Finance (75 percent), the National Social Security Institute (15) and the Social Security Fund of the Angolan Armed Forces (10).

With the recapitalisation, the shareholder structure changes, with the Ministry of Finance holding only 53.3%, IGAPE, a new shareholder, 37.3%, the FAA National Institute of Social Security and Caixa Social reduce its holdings to 5,6% and 5.3%, respectively.

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