China signs financing deal with Angola

2018-10-11 12:00:24

China has signed a new deal with the Republic of Angola that outlines a financing from the Chinese Development Bank estimated at USD $2 billion.

The deal was signed in Beijing on Tuesday, with the credit line to be used in the construction and conclusion of various infrastructures in Angola.

Angola has been struggling to overcome a strong economic crisis that began in 2014 due to the steep fall, in the international market, of the price of crude-oil (country's main exporting commodity).

The country has recorded a significant decrease in its revenues, which caused the Angolan government to approve a General Budget with a GDP deficit of 2.9 percent, with most of the revenue being used to pay the public debt.

China, deemed the main financier of Angolan infrastructures, granted its first credit line to Angola in 2002.

According to official data, Angola's debt to China is currently of about USD 23 billion.