BoN confirms final payment from Angola
The Bank of Namibia (BoN) on Friday announced that the Angola central bank, Banco Nacional De Angola (BNA) has settled its outstanding debt to the Namibian central bank, with the last payment of US$51.1 million (N$706.7 million) made on 22 June 2018.
At a press briefing in Windhoek, the central bank deputy governor Ebson Uanguta said the realisation of the final repayment was made possible by the support of President Hage Geingob “and the people of Namibia, which stood by the bank, and had faith and trust in the arrangements announced by the two central banks.”
The debt originated from the implementation of the Currency Conversion Agreement (CCA) which entered into force on 18 June 2015. According to the central bank, the agreement was hailed as a significant step in smoothing trade activities at the border towns of Oshikango in Namibia and Santa Clara in Angola.
The two institutions relooked the agreement and resolved that there would be no further exchange of Angola Kwanzas in Namibia as was the case and a new implementation arrangement was agreed upon, which included a repayment schedule of the debt.
The revised CCA entails the selling of Namibia dollar to BNA which in turn facilitates currency exchange at commercial banks & Bureau de Changes in Santa Clara, Angola through normal banking transactions.
This is unlike before when the exchange of Angola Kwanzas was happening through commercial banks in Namibia, the revised arrangement does not attract any repayment.
On the whole, Angola had paid Namibia US$426.3 million (N$ 5.7 billion at the current exchange rate) as a result of the currency conversion agreement.
“The settling of the outstanding obligation signifies a high-level commitment to expand on the existing political and economic ties between the two nations, in order to promote trade and economic development,” said Uanguta.
At a press briefing in Windhoek, the central bank deputy governor Ebson Uanguta said the realisation of the final repayment was made possible by the support of President Hage Geingob “and the people of Namibia, which stood by the bank, and had faith and trust in the arrangements announced by the two central banks.”
The debt originated from the implementation of the Currency Conversion Agreement (CCA) which entered into force on 18 June 2015. According to the central bank, the agreement was hailed as a significant step in smoothing trade activities at the border towns of Oshikango in Namibia and Santa Clara in Angola.
The two institutions relooked the agreement and resolved that there would be no further exchange of Angola Kwanzas in Namibia as was the case and a new implementation arrangement was agreed upon, which included a repayment schedule of the debt.
The revised CCA entails the selling of Namibia dollar to BNA which in turn facilitates currency exchange at commercial banks & Bureau de Changes in Santa Clara, Angola through normal banking transactions.
This is unlike before when the exchange of Angola Kwanzas was happening through commercial banks in Namibia, the revised arrangement does not attract any repayment.
On the whole, Angola had paid Namibia US$426.3 million (N$ 5.7 billion at the current exchange rate) as a result of the currency conversion agreement.
“The settling of the outstanding obligation signifies a high-level commitment to expand on the existing political and economic ties between the two nations, in order to promote trade and economic development,” said Uanguta.
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