Tuesday, March 17, 2020

Angola: Falling Oil Prices Could Lead to Debt Default

CL Brief, a business consultancy based in Macau, posted on 16 March 2020 an article titled "Analysis: Angolan Economy Set for Covid-19 Blow."

The sharp drop in oil prices caused by economic slowdowns following the outbreak of Covid-19 has sharply impacted Angola, which relies on oil exports, mainly to China. Angola has borrowed $21.4 billion from the China Development Bank and China Exim Bank, which it repays by sending oil to China at market price. If oil remains at $33 a barrel, Angola could face a default on its debt.