Angola is using an unusual deal with China to relieve a debt crunch in Africa’s second-biggest oil producer by unlocking cash from a Chinese-controlled account to pay interest on a crucial loan, its finance minister said.
Vera Daves de Sousa told the Financial Times the southern African nation had agreed with the China Development Bank, the country’s largest single creditor, to release cash held as collateral for a multibillion-dollar loan.
Her comments on the deal offer a rare window into behind-the-scenes efforts by Chinese banks to provide payment support short of outright debt relief to poor countries that are struggling to pay them back.
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