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Finance
CAPITALAND FINANCIALMARKETS
constitute the major source of risk affecting Angolan
banks as the sector maintains a great part of its as-
sets in foreign currencies.
Regarding foreign investment in the banking indus-
try, there are several banks with shareholdings by
Portuguese and South African private banks.
The year of 2009 was marked by a global economic
downturn. The crisis in Angola resulted in a signifi-
cant reduction of state revenues and the level of
confidence of economic agents. In this sense, there
were fears of currency devaluation, which led to an
increase in the share of assets denominated in USD
and a negative impact on foreign exchange reserves
of the country.
After the growth of oil prices in the second quarter of
2009 and the internal dynamics of other sectors of
the economy (e.g. Agriculture and Livestock, Con-
struction and Commercial Services) the Angolan
economy grew again in 2010.
The stabilization of the economy over 2010 was also
a consequence of measures taken under the agree-
ment with the IMF. There was a recovery of non-oil
fiscal balance and measures were taken in terms of
monetary policy that led back to the level of interna-
tional reserves and mitigate the effects of the crisis
in the current account and the balance of public ac-
counts. Finally, it is noted that in the last half of 2010,
began the process of settlement of debts to foreign
companies.
Additionally, during 2010 the top three rating agen-
cies, Standard & Poors, Fitch and Moody’s, attrib-
uted for the first time a rating to the sovereign debt
of Angola.
The credit rating (B + and B1) is equivalent to other
emerging economies with high growth potential such
as Russia and Brazil.
The assignment of a credit rating is an important step
in the internationalization of the Angolan economy,
promoting foreign investment and access to interna-
tional debt markets.
The banking sector in Angola is still very oligopolistic
in structure, with the top five banks (BPC, BFA, BAI,
BIC and BESA) holding about 80% of all deposits,
but the competition is showing signs of growth.
The industry is currently very dynamic and the ban-
carization is still very low (around 10%) therefore are
significant prospects for growth.
For many years the development of capital markets
was adversely impacted by macroeconomic instability
and hyperinflation. The progress accomplished by the
monetary authorities with regard to controlling infla-
tion and improving exchange rate stability has effec-
tively eliminated these impediments.
Angola’s capital markets are still in their incipient
stage. The stock exchange is in developing stage and
there aren’t company bonds available. Capital mar-
kets are currently limited to short-term public debt.
Despite a financial markets law passing the stock
market did not open in 2006. In March 2010, the for-
mer Finance Minister suggested it would be launched
in 2010 but again the deadline was missed.
The chairman of the Capital Market Installing Com-
mission said in 2010 that arrangements to set up the
Bolsa de Valores e Derivativos de Angola (BVDA) are
far advanced.
However, the expectation is that the Angola Stock Ex-
change will not be operational in 2011.
The interbank money market does not exist as a
formal market and transactions between banks are
limited.
The National Bank of Angola in Benguela