ICBC reprofiles $3 billion of outstanding debt for Government of Angola in 2020 and 2021

In 2020 and 2021, the Industrial and Commercial Bank of China (ICBC) and the Government of Angola agreed to reprofile multiple loan agreements that they had previously signed. The parties reportedly agreed to a (i) a three-year deferral of principal payments; and (ii) repayment of deferred principal falling due in 2020H2–2023H1 over seven years after the grace period, with some additional modest relief of principal in 2024–25. The Government of Angola’s debt outstanding under various loan agreements with ICBC was $3 billion as of December 31, 2021. The Government of Angola and China Development Bank (CDB) also reprofiled multiple loans in 2020, and according to the IMF, the reprofiling agreements with CDB and ICBC jointly produced cash flow savings worth $1 billion in 2020, $1.9 billion in 2021, $1.8 billion in 2022, and $200 million in 2023.

Additional details

1. According to SAIS-CARI Briefing Paper #9 (https://static1.squarespace.com/static/5652847de4b033f56d2bdc29/t/64303cd252cc4045dafc811f/1680882899126/Briefing+Paper+9+-+China+and+DSSI+-+April+2023+-+V5.pdf), which was published in April 2023, 'ICBC agreed to extend the maturities of loans that fell due over a three-year period, between the second half of 2020 and the first half of 2023, with the principal payments spread out over seven subsequent years. However, Angola would still need to pay interest during the suspension.'

Number of official sources

2

Number of total sources

7