The Angolan government has regulated the issuance and management of the direct and indirect public debt through the establishment of negotiations and signing rules on public contracts.
According to a note from the Finance Ministry that reached Angop on Monday, the said rules have been elaborated based on Presidential Decree, which sets that the head of the ministerial department responsible for Public Finance is tasked of negotiating and signing debt contracts on local currency Kwanza (AKZ) worth up to USD10 million.
In the meantime, debt contracts worth above USD 10 million needs to be authorized by the Holder of the Executive Power, reads the note.
The Finance Ministry in the framework of the new regulation standard is also tasked of negotiating and assessing the necessary credits availability, which enables the State financing as well as the management of the credit and debt availability through the Public Debt Management Unit (UGD).
In the terms of the decree, the president of the Republic authorized the issuance of the direct public debt securities through the Obligations of the Treasure to be monthly and weekly issued, while interest are to be monthly paid.
The introduction of a new element dubbed “Preferable Securities Operators” in the primary market is also one of the amendments made in the new regulatory document.
The preferable operators are entities to be authorized by UGD, which complies with requisites set by executive decree of the head of ministerial Finance department.