Luanda: Government debt stock stood at approximately 65.8 trillion kwanzas in the first half of this year, representing 51.24% of the national Gross Domestic Product (GDP). This information was provided on Monday in Luanda by the Secretary of State for Finance and Treasury, Ottoniel dos Santos, during a ceremony reviewing the Annual Borrowing Plan for the first half of the year.
According to Angola Press News Agency, the official explained that domestic debt accounted for about 19.3 trillion kwanzas, while external debt stood at approximately 46.5 trillion kwanzas. He noted that these figures demonstrate that external debt continues to carry significant weight in the portfolio. However, he pointed out a gradual shift in the debt composition, with an increase in the relative share of domestic debt.
This shift, he continued, should not rely on an indiscriminate increase in the State's recourse to domestic financing, but rather result from prudent management of various financing sources and a gradual reduction in external exposure. Ottoniel dos Santos emphasized that developing the domestic securities market remains a priority for the Executive, given its importance in promoting greater liquidity and efficiency within the Angolan financial system.
He noted that the execution of the Annual Borrowing Plan during the first half of the year took place against an international backdrop still marked by financial market volatility, persistent geopolitical tensions, and restrictive monetary conditions in several economies. This environment, he explained, shapes access to financing, influences the cost of debt, and increases economies' exposure to adverse movements in interest rates, exchange rates, and commodity prices.
During his remarks, the Secretary of State highlighted the downward trend in oil-backed debt during the first half of this year, noting a decrease from $7.37 billion to approximately $6.83 billion by the end of June. He noted that this reduction reflects the Executive's efforts to progressively reduce reliance on financing collateralized by oil revenues, limit debt exposure to crude oil price volatility, and preserve greater decision-making flexibility for the State.
According to the Secretary of State, the sustainability of public finances cannot depend on the performance of a single commodity; he reiterated that the national economic diversification process is ongoing, aiming to reduce external vulnerability, broaden the tax base, and strengthen the country's capacity to meet its obligations.
