Luanda — A contract for the transfer of a portfolio of non-performing loans involving 434 entities was formalised in Luanda on Tuesday between the Development Bank of Angola (BDA) and Recredit, Gestão de Activos.
The non-performing loan portfolio is valued at AOA 261.92 billion.
The agreement was formalised on the sidelines of the 5th extraordinary session of the Economic Team, chaired by Minister of State for Economic Coordination José de Lima Massano, which reviewed the performance reports of public financial institutions.
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Under the agreement, Recredit intends to recover non-performing assets, with a view to ensuring the sustainability of the national financial system.
According to BDA Chief Executive Officer João Quintas, the initiative also aims to reduce the bank's high loan default rate from 57% to 30% by the end of the year.
The measure also seeks to clean up the bank's loan portfolio as part of its restructuring, making it more robust, reducing market risks and attracting additional financing lines, the executive said.
For her part, Recredit Chairwoman Mirian Ferreira explained that, initially, the institution would prioritise out-of-court recovery, with legal proceedings being initiated whenever necessary.
She added that the institution intends to help BDA focus on financing the real economy.
Financing strategic projects
Subsequently, the Development Bank of Angola signed memoranda of understanding with companies developing projects in strategic areas of the national economy. The agreements have a total value of AOA 30 billion.
The first was signed with Every Where Angola for the development of an industrial unit producing crude soybean oil, integrating raw materials supplied by producers financed by BDA.
With Nova Fumetal, the partnership focuses on establishing a metallurgical plant to produce equipment and machinery for the agricultural sector, contributing to strengthening national industrial capacity and mechanising agriculture.
With Virtus Honos Trading, the agreement aims to produce and market fruit pulp, promoting the processing of domestic agricultural production and enhancing its value chain.
Another notable agreement is a tripartite arrangement between BDA, the Agricultural Development Support Fund (FADA) and LUMINA - Spargere, aimed at institutional coordination around the Kahosi Agro-industrial project and other agro-industrial initiatives of common interest.
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The project provides for the establishment of four medium-scale agro-industrial units for processing locally produced agricultural raw materials.
FADA removes document requirement from credit applications
On the same occasion, the Agricultural Development Support Fund signed five memoranda of understanding, two of which are directly aimed at simplifying credit application procedures and creating conditions to eliminate the requirement to submit documents issued by the National Directorate for Identification, Registration and Notary Services (DNIRN) and the National Social Security Institute (INSS).
The initiative aims to facilitate the formalisation of beneficiaries and projects, strengthen social protection, improve coordination between financing mechanisms and support the development of agricultural and aquaculture value chains.
FADA also formalised eight financing contracts for poultry farming, pig farming, agricultural production and agro-industrial processing projects in the provinces of Cuanza-Sul, Huambo, Cabinda and Icolo e Bengo.ACC/QCB/DOJ
