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Vol 56 No 3

Published 6th February 2015


Angola

Oil fuels Luanda panic

The crash in the price of crude oil may not have worked through the economy yet but it has already trashed all spending plans

'Angola has seen nothing yet,' is a common comment in Luanda business circles about the impact of the oil price crash on the country. The government is seeking to plug financial gaps. 'They are out scrambling, trying to find dollars,' said a financial source in the capital. 'International banks are offering Angolan debt deals to raise dollar financing for the government.' Angola has secured US$250 million from the Goldman Sachs Group Inc. and the same amount again from Gemcorp Capital LLP, according to agency reports, while China Development Bank has loaned $2 billion loan to the state-owned oil company, Sonangol. Negotiations are also under way with the World Bank for more aid.

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