Africa-Press – Angola. The Angolan public debt reduces, between 2020 and 2022, by around 72 percentage points, going from 133.8 percent to the 61.9 percent forecast for until the end of the year.
According to the Secretary of State for Finance and the Treasury, Ottoniel dos Santos, the ratio of public debt to Gross Domestic Product (GDP) has been decreasing consistently in line with the Law, and it is estimated that, by the end of year, reach a level of 61.9 percent. Ottoniel dos Santos chaired, yesterday, in Luanda, the opening act for the presentation of the 16th edition of the study “Banking in Analysis 2022”, an initiative by Deloitte.
On the occasion, he said that the estimated percentage is very close to that defined in the Public Finance Sustainability Law, which provides for a public debt ratio at the level of 60 percent in relation to the value of GDP. As detailed, in August this year, the debt ratio was around 66.2 percent, a significant step, as public debt in 2020 was 133.8 percent.
“The result of a lot of work done by actors in the mixed sector and, especially, by the Executive, through compliance with the Public Finance Sustainability Law, it was possible to register a little more fiscal discipline, which resulted in a decrease in the ratio to 82 .9 percent”, he stressed.
According to Ottoniel dos Santos, the Government has the support of investors, because it realizes that public investment alone is not enough to make GDP grow. Hence the need to boost another variable, which is private sector investment. As for the year 2023, in line with the Public Finance Sustainability Law, Ottoniel dos Santos said a ratio below the indicator of 61.9 percent of GDP is expected. Likewise, the sector will continue to focus on reducing and maintaining levels compatible with debt sustainability and average annual gross financing needs.
“To the extent that the State has less financing needs, especially with the use of internal savings, the files will be channeled to credit operations to the real economy and more opportunities open up for the development of the capital market”, he pointed out.
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