Moody’s agency report points out that, in Angola, economic growth should recover to 2.5% in 2021 after five consecutive years of recession.
The credit rating agency Moody’s said this Monday, (21.12), that the outlook for African banks to move towards 2021 is negative due to the difficult operating conditions, with Angolan banks having the highest percentage of non-performing loans.
“Our outlook for African banks remains negative as 2021 approaches, with difficult operating conditions and strong links to the countries in which they operate to be the main reasons,” said agency vice president Constantinos Kypreos.
According to the report by the agency Moody’s, the forecast of non-performing loans, that is, the percentage of loans with collection difficulties in relation to the total is expected to double, and in Angola, this figure is more than twice the second worst.
Angola with prospects for economic growth
According to the report consulted by Lusa, Angolan banks have in 2020 almost 30% of loans whose customers have difficulties in paying, which compares with 11% in Tunisia, the second country with the highest rate of non-performing loans.
“We expect that non-performing loans may double compared to 2010 levels, in a context in which increased supply needs, reduced business generation, and falling profit margins will hurt banks’ profits,” added the head of Moody’s.
Regarding Angola, the report points out that economic growth should recover to 2.5% in 2021, after five consecutive years of recession, but stresses that “moderate oil prices and the new coronavirus pandemic will hinder the economic recovery”.
Angola’s growth for the next year is, however, below the average forecast for sub-Saharan Africa, a region that Moody’s anticipates will expand by 3.3% in 2021.
