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Angolan State-owned bank reports €4.3 billion black hole

BPCAngolaIt’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%).
 
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.
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Comments  

0 #9 Darcy 2018-05-22 14:01
Terry P,
If it is money laundering and Tax evasion you are looking for, then look no further thanthe City of London.
Àny financial transactions between any European country with any other country that is outside of Europe, must come through the City of London.for clearance (this EU service will no longer be in London after Brexit).
So, if money laundering has been taking place between Portugal and Angola, it has been cleared by the City of London.
0 #8 Jack Reacher 2018-05-22 12:18
Quoting Denby:
Denis p,
While you are having fun flushing out.... I think it is worth while to remind you that this article is about Africa and not about Europe.

So convenient of you to forget about Angola's colonial past and Portuguese influence. I think we all know where Angola is..on the African Continent..where corruption rules supreme (and where Portugal fits in quite nicely..and not in Europe).
0 #7 TerryP 2018-05-22 10:55
Quoting Darcy:
Follow the dirty money trail that leads directly to the UK and USA, that's where you will find the founder's of bad dept and bad loan provider's in the world.
Throw in all of the off shore account provider's ( UK ownership) where the dirty money of the richest people of the world sits without paying their taxes and you have a right dirty old mess of riches.
When is the world going to wake up and start demanding that these individuals should declare their money and pay their taxes like the rest of us.
Portugal is often cited as being the biggest laundry for Angolan crooks, politicians (same thing) and tax evaders, see: https://www.jn.pt/nacional/interior/ana-gomes-diz-que-portugal-e-a-lavandaria-dos-corruptos-da-cleptocracia-em-angola-9329892.html
-2 #6 Denby 2018-05-22 10:55
Denis p,
While you are having fun flushing out.... I think it is worth while to remind you that this article is about Africa and not about Europe.
0 #5 Darcy 2018-05-22 09:43
Follow the dirty money trail that leads directly to the UK and USA, that's where you will find the founder's of bad dept and bad loan provider's in the world.
Throw in all of the off shore account provider's ( UK ownership) where the dirty money of the richest people of the world sits without paying their taxes and you have a right dirty old mess of riches.
When is the world going to wake up and start demanding that these individuals should declare their money and pay their taxes like the rest of us.
+1 #4 Dennis.P 2018-05-21 15:50
Always fun to flush out Portuguese Manjeijoitis types like dw. Bifes Malpasados followers.
That book would have been so much more informative for the rest of the world to have focused solely on the differences between Portugal and the more developed countries of the world. But then Manjeijo, even after 25 years in the UK, was still essentially a Portuguese. Seeing British life through south European, Graeco-Roman eyes.
Just as so many north European ADN followers living in Portugal will never shake off their disbelief at what illegalities the Portuguese elite are being discovered (or not so if they are above the law) to have been doing next. As the elite will not stop as there is nothing in Portugal to stop them.
0 #3 dw 2018-05-21 11:12
Quoting Jack Reacher:
The Angolan banking system learnt from the best debt and bad loan masters of Europe...fan fare..applaud..Portugal...who else?

Err, the US and UK? The record for bad debt and dodgy lending was the 2008 crash which emanated from Wall Street and the City of London.
+1 #2 livaboard 2018-05-21 07:29
"5 billion loss, what should we do, boss?"
"Fire a few tellers and cleaners, that should do the trick."
"Sounds good, meet you on the new yacht later?"
+1 #1 Jack Reacher 2018-05-20 19:01
The Angolan banking system learnt from the best debt and bad loan masters of Europe...fan fare..applaud..Portugal...who else?

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