Increase in non-oil revenues boosts financial rating agency

  • Minister of Finance Vera Daves
Ndalatando - Angolan minister of Finance Vera Daves Wednesday said that the increase in non-oil revenues and the prospects of rising oil prices contribute to the outlook of the rating agencies on national economy.

The minister said so in Ndalatando city, northern Cuanza Norte province, stating that the outlook stems from the results of the economic reforms implemented by the Executive.

According to her, the situation is improving the fiscal performance and public accounts, despite the Covid-19 pandemic that has further aggravated the country's financial conditions and the fragility of revenues.

Vera Daves was speaking to the press of the decision of the financial rating agency Moody's to revise Angola's sovereign debt rating upwards, predicting economic growth this year.

The minister explained that Angola's credit risk rating with “Up Great” provides, in practical terms, benefits to the country, in the way the financial institutions and foreign investors perceive it.

It also helps the country in its ability to obtain financing on better terms and at lower interest rates.

“The higher Angola's credit rating, the easier it will be to get low-interest financing. This impacts the country's ability to finance projects, debt service and the way potential investors look at the country. Therefore, the narrative of attracting private investment is also easier”, explained the minister.

In this new notation, she pointed out, exchange stability, the growth of liquid international reserves and debt management were praised.

The minister also said that Angola is adopting a conservative attitude in granting of new financing, with a commitment to broadening the tax base so that the indebtedness is within the limits of the country's needs.

Vera Daves highlighted the resilience of public accounts that allowed reaching, in 2020, a deficit lower than expected, adding that the Government is working so that the year 2021 ends without a budget deficit.

“Everything is going well, there are indicators that the country may have a surplus in this financial year”, she stressed.

She noted that the Executive is doing everything to maintain the good performance of public accounts, despite the adversities.

The official added that the Ministry will continue to advocate the improvement of the quality of public expenditures, through the interaction it has had with the different budget units, taking into account the country's financial limitations.

Vera Daves stressed that the government will continue to focus on the tax reform agenda, fiscal consolidation, macroeconomic stability, with stress to the real economy, improvement of the business environment and job creation.

 

The minister said so in Ndalatando city, northern Cuanza Norte province, stating that the outlook stems from the results of the economic reforms implemented by the Executive.

According to her, the situation is improving the fiscal performance and public accounts, despite the Covid-19 pandemic that has further aggravated the country's financial conditions and the fragility of revenues.

Vera Daves was speaking to the press of the decision of the financial rating agency Moody's to revise Angola's sovereign debt rating upwards, predicting economic growth this year.

The minister explained that Angola's credit risk rating with “Up Great” provides, in practical terms, benefits to the country, in the way the financial institutions and foreign investors perceive it.

It also helps the country in its ability to obtain financing on better terms and at lower interest rates.

“The higher Angola's credit rating, the easier it will be to get low-interest financing. This impacts the country's ability to finance projects, debt service and the way potential investors look at the country. Therefore, the narrative of attracting private investment is also easier”, explained the minister.

In this new notation, she pointed out, exchange stability, the growth of liquid international reserves and debt management were praised.

The minister also said that Angola is adopting a conservative attitude in granting of new financing, with a commitment to broadening the tax base so that the indebtedness is within the limits of the country's needs.

Vera Daves highlighted the resilience of public accounts that allowed reaching, in 2020, a deficit lower than expected, adding that the Government is working so that the year 2021 ends without a budget deficit.

“Everything is going well, there are indicators that the country may have a surplus in this financial year”, she stressed.

She noted that the Executive is doing everything to maintain the good performance of public accounts, despite the adversities.

The official added that the Ministry will continue to advocate the improvement of the quality of public expenditures, through the interaction it has had with the different budget units, taking into account the country's financial limitations.

Vera Daves stressed that the government will continue to focus on the tax reform agenda, fiscal consolidation, macroeconomic stability, with stress to the real economy, improvement of the business environment and job creation.