Economics
Angolan Bonds Plunge as President Warns of Debt-Payment Struggle
- Dos Santos says oil revenue ‘barely enough’ to pay debt
- Angola risks recession and debt crisis, says Capital Economics
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Angolan Eurobonds tumbled after the leader of Africa’s largest oil producer said the country is struggling to meet debt payments because of the crash in crude prices.
Revenue is “barely enough” to pay debt owed by the government and Sonangol, the state oil company, President Jose Eduardo dos Santos said at a meeting of the ruling MPLA party, according to a broadcast on state TV Friday. The central bank has been receiving about $300 million a month from oil companies, “manifestly insufficient for the needs of banks and the needs of the state budget,” Dos Santos said.