Luanda, July 31, 2026 (Lusa) — Angola has completed its first debt-for-education swap, worth €340 million, with an estimated saving of $64 million (€54 million), the Ministry of Finance (Minfin) has announced.
The Ministry awarded the financing to the Spanish bank BBVA after evaluating 16 bids from international financial institutions, and the operation cost around 3.80%, which is lower than the interest rate on the refinanced debt.
The refinancing covered 13 loans taken out with three financial institutions, with interest rates ranging from 9% to 10% per annum.
The early repayment of these obligations is expected to generate savings of around $64 million over the life of the operation, according to the Ministry of Finance.
Furthermore, a three-year grace period is expected to reduce debt servicing costs by around $270 million (around €230 million), thereby easing pressure on public finances, it adds.
The structure of the operation benefited from a guarantee from the International Bank for Reconstruction and Development (IBRD) worth $240 million (around €204 million), supplemented by a second-loss guarantee from the Multilateral Investment Guarantee Agency (MIGA); these mechanisms made it possible to mobilise commercial financing on more competitive terms.
The generated savings will fully fund the Girls' Empowerment and Learning for All II Project (PAT II), which will cover the country's 21 provinces and aims to strengthen access to education, human capital and gender equality.
According to the Ministry of Finance, the operation enables the replacement of more costly external commercial debt with financing on more favourable terms, and forms part of the 2026–2028 Medium-Term Debt Strategy, which aims to reduce financing costs and strengthen the sustainability of public debt.
The Angolan government emphasises that the operation «positions Angola amongst the pioneering countries in the use of innovative financial instruments that combine fiscal sustainability with the financing of social priorities, thereby strengthening the country's credibility with international markets and development partners».
The financial close of the operation, known as the «Debt-for-Education Swap», took place on 27 July, and the conditions are now in place for disbursements to be made in the coming days, according to the Public Debt Management Unit (UGD).
At the end of the first half of 2026, Angola had a public debt stock of $72.04 billion, an increase of 9.12% over the same period last year, according to the debt balance sheet presented by the UGD on 20 July.
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