BEIJING– Angola’s Finance minister, Archer Mangueira, said that part of the Chinese government’s USD 2 billion financing, will be used to pay debts the government owes to Chinese creditors.

Speaking to the press in BEIJING, following the agreements signed between the Angolan and Chinese governments, the minister said the authorities intend with this credit granted, to make a medium and long-term amortization of the debt.

The credit line is part of the agreement signed by Angola’s Finance Ministry and China Development Bank (CDB), in the framework of the recent visit of the Angolan president, JoAPound o Lourenco.

Without specifying the interest rate to be applied under the new credit line and payback terms, the Angolan official, said the new financing from China is destined to the execution of projects, which create incomes for the country.

It will be destined to financing projects that can leverage the productive sector, in such a way that, in a medium and long-term could increase the volume of revenues, mainly of those turned to exportation, said the minister.

With this financing, the Angolan government will seek to reduce the pressure on the balance of payments and the debt stock, besides creating new areas to boost economy and spaces for socio-economic development.

According to the minister, there have already been identified several projects to benefit from this new credit line, namely of the construction, energy, water and industry, which are expected to leverage the productive sector, diversify the economy and change the current trajectory of the country’s public debt.

Official data from the Angolan government reports that up to September 2018, the country owed China an accumulated debt estimated at US$23 billion.

Angola and China also signed an agreement that puts an end to double taxation in commercial transactions, which according to the minister, will enable investors from this Asian country to feel more motivated to invest in the country.

Since January this year, the Angolan government carried out measures to improve the country’s business environment, focus on strategic financial relations with main partners, including China.