Luanda – Credit granted to the economy continue insignificant in the Bank balance sheet, Angola’s National Bank (BNA) governor has said.
The manager said that the situation is evident in the transformation ratios, as 22 of the 25 commercial banks have a transformation ratio of less than 50%.
The Monthly Analysis Report on Granting Credit to the Real Sector of the Economy, published by BNA in August and reached ANGOP, indicates the contracting of new credits to the real sector in the amount of 132. 983 billion kwanzas.
Of this figure, 69.4 billion (35.19% of the minimum amount to be granted in 2020) corresponds to disbursed financing.
Of the 520 projects to be financed this year, only 29 were disbursed in the amount of 69. 40 billion kwanzas referred above, under the terms of Notice 10/2020, of 3 April.
The main funders of the referred projects include BAI, Millennium Atlântico, Caixa Geral Angola, BFA, Keve, Standard Bank Angola, Banco Yetu, BIC, BNI, Keve, BIR, BMF.
Massano considered this business model unsustainable, adding that the Treasury is not expected to reissue bonds indexed to foreign currency.
The governor also ruled out a depreciation in the national currency at the levels seen in the last years.
Speaking at the opening ceremony of 9th Economy and Finance Forum sponsored by ABANCA - Angolan Association of Banks, José de Lima Massano, recommended the re-evaluation of business options of commercial banks.
The objective is to match the strategy of the economic diversification that entails the reduction of imports and the expansion of the productive sector.
To ensure development of the economy, the governor defended Inclusive sector, strong and sustainable financial system. Following the legal and best international practices.
In addition to the changes implemented by the Central Bank and the situations caused by covid-19 - which has not been resolved yet - and the impact on the economy and therefore on banks, the manager said that there are several other factors that pose relevant challenges to the national banking sector.
The two-day event, held via videoconference and going until 13th, runs under the motto (Risk Management and the Impact of the Equivalence Process of Supervision of Banking Sector in Angola”.
