Kwanza agreement to be settled earlier
The Angolan central bank has agreed to repay outstanding money from its currency-exchange deal with Namibia by June next year.
The Namibian central bank and its Angolan counterpart have agreed to shorten the repayment time of their currency-exchange agreement, with the last payment scheduled for June 2018.
The Bank of Namibia (BoN) and Banco Nacional de Angola (BNA) entered into the agreement on 18 June 2015 to allow the exchange of Angolan kwanza for Namibian dollars at the border town of Oshikango in an effort to ease cross-border trade.
The two central banks agreed for the BNA to repay the repurchase costs for kwanza notes that pass through Namibia.
Under the initial agreement, the BNA had to pay the BoN about US$426 million (about N$ 5.4 billion) in quarterly instalments before the agreement expires in 2019.
BoN spokesperson Kazembire Zemburuka told Nampa on Monday that the two reserve banks met in December 2016 and entered into a new agreement.
“The two central banks met last year to discuss various issues which included the status of the currency-conversion agreement. The outstanding obligation owed by BNA was discussed and it was agreed that the repayment period be shortened.”
Zemburuka said there were no shortcomings in the first agreement as the BNA honoured the repayment schedule, but the new agreement reflected an improved economic outlook for Angola because of a positive outlook for crude oil prices.
Crude oil accounts for a significant portion of Angola's exports and foreign reserves.
Zemburuka said the last payment made by the BNA was US$20 million (approximately N$253 million and brought the total repaid to US$120 million (about N$1.5 billion).
This leaves the total debt outstanding at US$306 million (approximately N$3.8 billion), he said.
“The BoN believes that BNA will honour this obligation agreed between the two institutions as it has done thus far.”
He said the repayment would boost Namibia's foreign reserves, which stood at N$22.9 billion on 31 January 2017.
NAMPA
The Bank of Namibia (BoN) and Banco Nacional de Angola (BNA) entered into the agreement on 18 June 2015 to allow the exchange of Angolan kwanza for Namibian dollars at the border town of Oshikango in an effort to ease cross-border trade.
The two central banks agreed for the BNA to repay the repurchase costs for kwanza notes that pass through Namibia.
Under the initial agreement, the BNA had to pay the BoN about US$426 million (about N$ 5.4 billion) in quarterly instalments before the agreement expires in 2019.
BoN spokesperson Kazembire Zemburuka told Nampa on Monday that the two reserve banks met in December 2016 and entered into a new agreement.
“The two central banks met last year to discuss various issues which included the status of the currency-conversion agreement. The outstanding obligation owed by BNA was discussed and it was agreed that the repayment period be shortened.”
Zemburuka said there were no shortcomings in the first agreement as the BNA honoured the repayment schedule, but the new agreement reflected an improved economic outlook for Angola because of a positive outlook for crude oil prices.
Crude oil accounts for a significant portion of Angola's exports and foreign reserves.
Zemburuka said the last payment made by the BNA was US$20 million (approximately N$253 million and brought the total repaid to US$120 million (about N$1.5 billion).
This leaves the total debt outstanding at US$306 million (approximately N$3.8 billion), he said.
“The BoN believes that BNA will honour this obligation agreed between the two institutions as it has done thus far.”
He said the repayment would boost Namibia's foreign reserves, which stood at N$22.9 billion on 31 January 2017.
NAMPA
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