Angolan Treasury securities allow investors to lend to the state
By the AFREEQUE newsroom, based on Mercado
Angolan individuals and companies can lend to the state by buying Treasury securities, which entitle them to repayment of the principal and, depending on the terms, interest payments. Angola’s Debt and Securities Exchange presents these investments, divided into short-term bills and bonds, as a way to diversify savings, Mercado reports.
Individuals and companies can lend money to the Angolan state by buying Treasury securities, which provide for repayment of the principal and, depending on the terms of the issue, payment of interest. The Angola Debt and Securities Exchange (BODIVA) presents these securities as an investment option on the country’s financial market, Mercado reports.
Treasury bills are short-term investments, generally lasting 91, 182 or 364 days. They are usually bought at a price below their nominal value; the gross return is the difference between the purchase price and the amount recovered at maturity, before taxes and fees. Treasury bonds generally have longer maturities and may offer periodic interest at a fixed rate.
Unlike buying shares, the purchaser of a Treasury security becomes a creditor of the state, and the return depends on the terms of the issue rather than a company’s performance. The funds raised are used for cash-flow needs and public spending, as well as public debt management.
Summary produced with the help of artificial intelligence tools, under AFREEQUE’s editorial responsibility.
