Espírito Santo desestabiliza Angola

The reported bail-out of a major bank risks destabilising the financial sector and affecting the country’s sovereign rating.

A huge state guarantee to a major local bank is causing concern about corporate governance and has the potential to destabilise the economy. The state has set aside up to US$5.7 billion for the country's second-largest bank, the Banco Espírito Santo Angola, to guarantee non-performing loans worth several billion dollars, according to several published reports. As with most banks in Angola, BESA shareholders are believed to include the most senior members of the ruling Movimento Popular de Libertação de Angola (MPLA), the government and the presidential family. Africa Confidential