Credit Guarantee Fund sells assets recovered from “Angola Investe”

The Credit Guarantee Fund is to sell, via the Angolan Debt and Values Exchange (BODIVA), assets and holdings recovered from the Angola Investe Programme, extinct in 2018.

The Fund, attached to the Ministry of Finance, even participated in the Angola Investe Programme, having assured guarantees to more than 150 companies, of which 40% had reported failures.

Without specifying the overall amount to be recovered, the Fund’s executive director, Eduardo Mohamed, only said that the most critical cases represent a value of around 20 billion kwanzas.

The programme, which was scrapped and replaced by others, was created by the Government to support the financing of investment projects for micro, small and medium-sized companies.

It was managed by national commercial banks and coordinated by the Ministry of Economy and Planning, in partnership with the Credit Guarantee Fund.

The initiative, Angola Investe, has been in force for about four years, and in that period, an amount of 120 billion kwanzas was granted to finance 515 projects.

The Government even participated with the granting of credit of 55 billion kwanzas to subsidize interest rates, capitalize guarantee funds and venture capital.

This time, the recovery and disposal of assets via the Stock Exchange is also an opportunity for companies, as well as national and foreign investors.

As part of the recovery of assets linked to the agriculture, industry and fisheries sectors, fundamentally, the Fund has a programme outlined for the payment of commercial bank actions, and then marks another step towards recovering the shares with the support of the banking involved in this process.

The programme lasts three years, according to Eduardo Mohamed, who was speaking to the press on the sidelines of the signing of the Memorandum of Understanding between his institution and BODIVA.

In the framework of the first Angola Invest programme that many companies benefited from, among small and medium-sized companies, we also had some failures that private banking activated the Guarantee Fund and the Fund plays its role here in terms of recovery”, he admitted.

He added that the “core business” of the fund is not to manage these small and medium-sized companies, hence the need for them to be passed to the market via auction.

The official assured that some companies will not lose their areas, in the case of farm owners, but instruments will be found for the funds recovery.

Source: Angola Press News Agency (APNA)