LUANDA (Reuters) - Oil-producing Angola could pay billions of dollars in late bills to Portuguese firms in the African nation in the form of bonds, a Portuguese government official was quoted as saying on Thursday.
Angola shocked investors earlier this week when it admitted it owed foreign construction firms an estimated $9 billion in late payments -- more than three times the amount estimated.
President Jose Eduardo dos Santos said his government would pay small and medium-sized firms this year, while larger companies would receive 40 percent of what they are owed this year and the rest in "one or two years".
Portugal's Lusa news agency quoted Secretary of State for Commerce Fernando Serrasqueiro as saying the big building firms could receive the balance in the form of public debt.
"The big companies will initially be paid 40 percent and are negotiating the terms of the payment of the rest of the arrears, which could eventually be paid in the form of bonds," he said.
The late payments started after oil prices fell sharply in 2008 and 2009. Angola rivals Nigeria as Africa's biggest oil producer and depends on oil for 90 percent of its income.
A spokesman for Angola's Economy Ministry was not available for comment.
A senior executive from a big Portuguese construction firm, who asked not to be named, said he would rather be paid in cash because his firm was already having to delay payments to suppliers.
Reuters Africa
