Washington — The announcement of Angola's return to the international capital markets, with the issuance of Eurobonds (debt securities) worth US$1.75 billion, was welcomed by investors in this segment, who place their full support and trust in the Angolan government.
The Deputy Director General of the Debt Management Unit (UGD) Wamilson Rangel, made this statement while speaking to the Angolan press on Thursday (16) on the sidelines of several meetings with international financial organizations, as part of the annual meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF), which will take place from the 13th to the 18th of the current month in, Washington, USA.
According to the official, this achievement is the result of the reforms that Angola has implemented, aimed at continuing to guarantee this trust and making borrowing costs more reasonable, ensuring the sustainability of public finances.
He emphasized that Angola found a "window of opportunity," with the conditions created to access the markets and thus help finance the budget deficit.
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As per him, financial institutions have shown great interest in working with Angola on the issuance of Eurobonds, based on the results achieved.
"Angola is open to returning to the markets soon, obviously depending on the financing costs," he emphasized.
He noted that, in general, during the meetings, issues related to debt sustainability were discussed, which is one of the most discussed topics in emerging economies, especially at a time when there are several external shocks that ultimately affect debt sustainability in several economies.
Wamilson Rangel informed that, in terms of debt, one of the major projects the Ministry of Finance has been doing is promoting transparency, with the increasing disclosure of public debt data, a fact that instills greater confidence among investors in the international community.
He added that another issue being addressed is reducing debt levels compared to a few years ago, noting that the current debt-to-Gross Domestic Product ratio is below 60%.
"We intend to continue with these reforms to ensure the sustainability of our public finances," he emphasized.
Angola has gained the trust of investors in the international capital market, which has approximately US$6 billion in credit available to the country. This financial availability is a result of the Angola's return to the international capital market, three years after its last issuance.
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In other words, the Angolan government recently requested a US$1.75 billion Eurobond issuance, but received an offer from international investors of approximately US$6 billion.
