Africa’s second-largest oil exporter cuts oil-backed loans from China amid market volatility.
Angola’s oil-backed debt to China is expected to decline to between $7.5 billion and $8.0 billion by year-end, according to the head of the country’s debt management office.
“All debt collateralised by oil revenues is concentrated in agreements with China, which have been gradually reduced in recent years,” said Dorivaldo Teixeira, Director of the Debt Management Unit at the Finance Ministry.
Angola is pressing ahead with efforts to reduce its dependence on resource-backed loans, as it navigates a challenging global economic landscape shaped by fluctuating commodity prices, elevated interest rates, and shifting investor confidence.
Oil-backed debt to China, which totalled $10.15 billion at the end of 2024, had already declined to $8.94 billion by the end of last month, according to official data. The government expects this figure to fall further to between $7.5 billion and $8.0 billion by year-end.
In April, the country was forced to make a $200 million margin call payment to JPMorgan for a collateralised bond, after a sudden drop in oil prices, triggered by U.S. tariff tensions, rattled frontier markets and pushed yields higher.
Source: Africabusinessinsider
