Angola will stop using oil to guarantee credit agreements with other countries, the president João Lourenço said on Wednesday.
Speaking to the Russian news agency TASS, the president also announced his intention to renegotiate the current credit agreements with China, Brazil and Israel.
“Angola has negotiated credits with China to build roads, bridges and other infrastructures but the value of our oil exports to China has been the same as our debt to China”, he said.
“We want to stop this kind of payment, with China and other countries such as Brazil and Israel, and we will stop using oil to guarantee our debts”, he added.
Last September, Fitch Solutions warned about the risks of this type of borrowings paid with oil, which has been much used by China in Africa, especially Angola.
According to the consulting company, Angola’s dependence of Chinese funding is over 40% of the total public debt and the country’s budget will remain in deficit up until 2027.
