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Unpaid credit recovery pushes resumption of normal financing

Fri, 17 Jan 2020 10:47 - Updated Fri, 17 Jan 2020 11:31

Finance Minister, Vera Daves Photo: Alberto Juliao

Luanda - The unpaid credit recovery, through making debtors accountable, will enable banks to have liquidity and strategies to return to providing credit to the economy and participate more effectively in financial inclusion, Finance minister, Vera Daves, said last Thursday.

Data from the Angolan banking sector show that the volume of bad credit (non-performing loans) doubled between 2015 and 2018.

She said that unpaid credit has reached dangerous levels, even stressing, through an idiomatic expression, that  somebody is to blame (guilt must not die single, she said literally).

The minister was speaking at the opening session of the 11th Consultative Council of the Finance Ministry, which will run for three days.

Unpaid credit in Angola has increased exponentially, reaching the percentages of 13.9% (in 2013), 15,1% (2014), 17,3% (2015), 25,4% (2016) and 33,3% (2017).

The official data show that in 2017, at least 84% of unpaid credit belonged to debtors to the public institution BPC - Banco de Poupança e Crédito (Savings and Credit Bank) - and the remaining 16% goes to the commercial banks.

The unpaid credit ratio in Angola is above the African average, ANGOP has learnt.

Meanwhile, Vera Daves seized the occasion to reiterate that the focus on fiscal consolidation must be a joint action involving all budgetary units and state agencies, adding that it is a necessary condition for the development of the national economy and achievement of prosperity.

To her, it is important to regulate, supervise more and intervene less, assist in reducing the bureaucracy of business, through tax efficiency, and the modernization of the tax apparatus, as well as the quality of taxpayer service.

Regarding the Consultative Council that will run for three days under the motto “Public Finance Consolidation for Prosperity”, the Finance minister said she hopes that the meeting will contribute to fiscal consolidation and improve the performance of public accounts.