… Namibia still owed billions by Angola
By Confidente Reporter
THE Bank of Namibia (BoN) is reeling from a loss of N$526 million, a monumental decline from a profit of N$3,5 billion realised in the 2015 financial year, the latest central bank annual report reveals.
Despite the regulator having declared N$68,1million in dividends for the 2016 financial year (down by approximately N$8 million from the previous year’s N$76,5 million), the profit for the year was N$195 million which was over powered by a net foreign exchange translation loss totalling N$722 million.
Close scrutiny on the bank’s statement of comprehensive income for the year ended December 31 2016 would further clearly show that even though the bank had current recievables of up to N$2,7 billion by Banco Nacional de Angola in the controversial Kwanza deal, the bank made a fair value adjustment of up to N$83 million.
“As at 31st December 2016 the NAD equivalent of the amount due from the Banco Nacional De Angola (BNA) amounted to approximately N$4.2 billion, excluding fair value adjustment. Repayment has been agreed with BNA and final settlement is expected during 2018. The Bank is confident that the BNA would honour their commitments and as such we assume recoverability of the debt in its totality,” notes the report.
With the fiscal consideration and last year’s recession having taken centre stage, the central bank’s accounts make clear recognition that deposits from the Government declined from N$10,3 billion to N$4,6 billion.
Subsequently and despite the bank propping up its reserves via a GIPF assets swap involving approximately N$4 billion in the 2016 financial year, IMF securities grew by approximately N$1,6 billion raising eyebrows on whether IMF gave Namibia more money.
It can be noted further that the Bank got involved in a Nampower BoN asset swap investment that offered relief of up to N$665 million.
“The GIPF and Nampower BoN Asset Swap arrangements were entered into to enhance Namibia’s foreign reserve stocks,” the bank acknowledged.
During 2016, BoN’s operating expenditure escalated to N$407,9 million from N$342,7 million during the previous term. This represents an increase of just over nine percent, or N$65,2 million.
It was further reported that currency in circulation during 2016 fell from N$4,5 billion in 2015 to just below N$4,4 billion. According to the central bank, this is due to the fall in demand for cash.
Providing further relief to deposits made to the bank were ‘other deposits’ that contributed N$639 million and donor funds chipping in with N$28 million.
The report confirms that other deposits are mainly made up of foreign currency denominated call deposit facilities provided to commercial banks and also call account facilities extended to specific local institutions. The pre-funded donor funds are monies received on behalf of the Government for various donor funded projects being undertaken in the country. These funds have no maturity dates and attract no interest.
Further questions regarding the matter sent to the Bank of Namibia had not been answered at the time of going to print.
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