Union Bank of Switzerland on Friday confirmed the approval of a new loan for Sonogal, the Angolan state oil company. Reuters reported that the funds would be available in July, with a "substantial" part of it being used to re-finance old loans. This newest loan has an extended repayment period, lightening its short-term repayment obligations.
Angola's poor track record in repaying external loans has virtually closed off most avenues of traditional lending, and it is estimated that the country has an external debt of about US $12 billion. The oil backed loans will be paid directly to the lender in cargoes of crude oil.
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