Thread by @JMCerdeira

1/10 Last week on the 🇦🇴Angolan economy

🏦Treasury started issuing short-term public debt, totaling AOA 3.5Bn in 364-day Treasury Bills, at a yield of 10.75%, -0.25 pp to the last issue of the same maturity in the end of 2022.

Yield dropped another 0.25pp this week.

#Angola

2/10 📊 In the first auction, the offer stood at AOA 30Bn, with demand at AOA 12.6Bn. The Treasury chose to issue less and bring the yield down, setting th tone for the following issues.

3 and 6 month issues should follow in the coming weeks.

3/10 💼 According to the Annual Debt Program, around AOA 3.1Tn will be raised via internal debt this year, with AOA 0.6Tn corresponding to Treasury Bills and the rest distributed between Treasury Bonds and loan agreements.

4/10📜 The new General Labor Law was passed with an overwhelming majority, replacing the previous legislation from 2015.

🔧The law is more favourable towards workers & presents several changes regarding working hours, remuneration, vacation, licenses, contract termination, etc.

5/10 📝 Key features include the default adoption of open-ended employment contracts, allowing for telework and service commission as special form contracts.

Also, amendments to the regulation governing worker mobility within a group of companies.

6/10 💵 The law also ends the distiction between large and small companies as a criterion for determining worker benefits such as compensation for firings.

Paternity leave broadened from 1 to 15 days (still not a lot, but what a difference).

🏦 According to Jornal Expansão, banking profits fell to AOA 372.9 Bn (-11% yoy), heavily impacted by the AOA 120Bn losses recorded by the publicly-owned Banco de Poupança e Crédito (BPC).

expansao.co.ao/empresas/inter…

8/10 💰 Excluding BPC, banking profits totaled AOA 493.3 Bn in 2022 (AOA -6.4 Bn compared to 2021).

Out of the 23 banks operating in Angola, 20 released their reports with 18 registering profits and the rest, losses.

9/10 🏆 BFA - which, full disclaimer, is my employer - continues to lead in terms of profits, with BAI maintaining the most assets, and BIC continues to hold the largest loan portfolio.

(Also other news regarding BFA this week, but I'd rather not comment them given my position)

10/10 💱 Finally, the Kwanza persisted in its downward trajectory against the Dollar and the Euro, depreciating around 4.18% and 3.64% respectively by the end of the week.

The move continued heavy this week, let's see how far it goes. If you ask me, it's an overshoot.