Bloomberg News

Angola Stops Commercial Banks Giving Foreign Currency Loans

June 17, 2011

(Updates with central bank comment in third paragraph.)

June 17 (Bloomberg) -- Angola banned commercial banks from issuing loans in foreign currency in an attempt to limit the use of the dollar in the economy, Banco Nacional de Angola said.

Exceptions can be made for borrowers such as the government and businesses with proven “revenues and receivables” in foreign currencies, the central bank said in a statement on its website yesterday.

“Financial institutions are expressly forbidden to realize credit operations, by disbursement in foreign currency of any term,” it said.

Angola, Africa’s second-biggest oil producer, needs to lower interest rates, while boosting confidence in the local currency, the kwanza, central bank Governor Jose de Lima Massano said in March. In November, the bank capped foreign currency purchases by residents at $5,000 and instructed commercial banks to value 80 percent of their capital in kwanza by June 2012.

--Editors: Philip Sanders, Karl Maier

To contact the reporter on this story: Candido Mendes in Luanda at cmendes6@bloomberg.net.

To contact the editor responsible for this story: Alastair Reed at areed12@bloomberg.net.


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