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Angola debt repayment positively impacts Namibia’s foreign reserves: central bank

Angola debt repayment positively impacts Namibia’s foreign reserves: central bank
Business Central Africa Southern Africa

Namibia’s central bank, Bank of Namibia (BON), said Friday Banco Nacional De Angola (BNA) has settled its outstanding obligation to Namibia, with the last payment of 51.1 million U.S. dollars.

BON Deputy Governor, Ebson Uanguta at the media briefing Friday in Windhoek said the settling of the outstanding obligation is a demonstration of the excellent cooperation established between the two central banks.

According to Uanguta on the whole, the repayment of the debt has had a positive impact on Namibia’s foreign reserves by 426.3 million U.S. dollars.

Uanguta said the debt originated from the implementation of the Currency Conversion Agreement which entered into force on June 18, 2015.

“The agreement was hailed as a significant step in smoothing trade activities at the border towns of Oshikango in Namibia and Santa Clara in Angola,” he added.

Despite the positive benefits of the agreement in the facilitation of trade between the two countries, Uanguta said the implementation experienced challenges which included abuse of the exchange of currencies outside the original scope which led to the accumulation of the debt.

As a result, the two institutions relooked at the agreement and resolved that there would be no further exchange of Angola Kwanzas in Namibia as was the case and a new implementation arrangement was agreed upon, which included a repayment schedule of the debt.

SOURCE: Newsnow http://www.xinhuanet.com/english/2018-06/29/c_137290356.htm



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