Proposal for solution to Banco Economico at completion stage

     Economy           
  • Luanda     Friday, 02 July De 2021    20h30  
National Bank of Angola (BNA) Headquarters, Luanda
National Bank of Angola (BNA) Headquarters, Luanda
Francisco Miúdo

Luanda – National Bank of Angola (BNA) announced on Friday the completion soon of the proposal for a solution to the recapitalisation process of Banco Económico (BE), formerly Besa.

We are working with Banco Economico in order to find a solution, said the deputy governor of the Central Bank, Rui Mingues.

“The situation of Banco Económico is well known. It's not new one. We have been working with that Bank to find a solution”,  the manager told a press conference on the Monetary Policy Committee.

BNA attributed the delay in the process to the previous Law on Financial Institutions.

It said that the previous Law hampered the Central Bank's capacity to find a comprehensive, lasting solution that would guarantee the stability of the financial system.

“The exercise to find this solution was, in a way, conditioned to the publication of the new Law in force. At this moment, we are in a position to conclude, shortly, a proposal for a solution”, he assured.

The International Financial Agency - Moody's downgraded the Rating (assessment) of Banco Económico (BE) to “Caa3” (low quality and credit risk), due to the time it has taken to complete the recapitalisation process of this Angolan institution.

 The study to identify better ways to “save” Banco Económico began in 2019, after the disclosure of the results of the quality of this bank's assets.

The process was initially to end in 2020 but did not happen due to Covid-19 pandemic, which triggered delays in procedure.



Tags



+