IMF Staff Country Reports

The FSAP takes place as the economy shows signs of recovery, but lingering concerns remain over liquidity pressures, given the fragile fiscal position and looming sizable external debt service. Angola’s oil-dependent economy recovered in 2024; yet sovereign and private financing conditions remained tight. The bank-dominated financial sector is small and appears adequately capitalized on average, but certain
vulnerabilities persist, including high non-performing loans, a substantial sovereign-bank nexus, and exposure to foreign exchange and climate-related financial risks. Liquidity indicators are high, with the bulk of banks’ funding coming from residents’ deposits.