It’s déjà vu all over again with the largest bank in Angola, State-owned BPC, reporting a gaping black hole in its 2017 year-end accounts.A loss of $5.2 billion (€4.3 billion) has been reported, mainly due to its customers failing to repay loans, thus creating the second worst loss in Angola’s banking history.
The information was discovered deep inside a prospectus for a $3 billion eurobond issue, paying a sporty 8.2% per annum. Within the 200 pages of regulatory jargon was the mention that in December 2017, the bank had $5.2 billion of underperforming and non-performing assets.
Earlier that month, the Angolan state already had issued government bonds worth €1.080 billion in favour of the state-owned company Recredit, to be used to buy bad debts from BPC which it is now trying to recover.
BPC is owned by the Angolan Ministry of Finance (75%), the National Social Security Institute (15%) and the Social Security Fund of the Angolan Armed Forces (10%).
Earlier that month, the Angolan state already had issued government bonds worth €1.080 billion in favour of the state-owned company Recredit, to be used to buy bad debts from BPC which it is now trying to recover.
BPC is owned by the Angolan Ministry of Finance (75%), the National Social Security Institute (15%) and the Social Security Fund of the Angolan Armed Forces (10%).
Impairments declared in 2016 totalled €392.2 million, but the 2017 losses have shocked the Angolan financial system and BPC’s 5,530 workers who now are part of a restructuring scheme involving branch closures.
"The bank is living a very special moment in its history, we want to clean up and restructure BPC and we will do it so that the bank will serve the state, its only shareholder," said Finance Minister, Archer Mangueira.
"The use of public funds is more than a determining factor for the current board of directors to face this situation as a challenge to be won on behalf of all Angolans," added the minister.
"The bank is living a very special moment in its history, we want to clean up and restructure BPC and we will do it so that the bank will serve the state, its only shareholder," said Finance Minister, Archer Mangueira.
"The use of public funds is more than a determining factor for the current board of directors to face this situation as a challenge to be won on behalf of all Angolans," added the minister.
