Angola Banks to Convert Foreign-Currency Mortgages to Kwanzas

Angola’s central bank has ordered lenders to give their clients the option of converting their foreign-currency mortgages into kwanzas, Bloomberg News reported. The move aims to reduce the risk of default amid a sharp depreciation of the local currency of Africa’s second-biggest oil producer. Only bank customers whose income is paid in kwanzas qualify, the central bank said in a statement published on its website Wednesday. Lenders should use the official exchange rate and refrain from charging a commission when converting the loan of any eligible customer wishing to take advantage of the directive, the Banco Nacional de Angola said. The kwanza has weakened 22% against the dollar this year, ballooning the debt of many homeowners. Read more