Declarations on Angolan Banks from Tiago Dionisio, Analyst at Eaglestone Advisory

Profit from a foreign-exchange law in Angola, Africa's largest crude oil producer behind Nigeria, may attract banks from the U.S., China and even Brazil, according to Eaglestone Securities BV. The law, passed last year, is expected to draw na additional $20 billion to $30 billion a year through Angolan banks, which may add 10 percent to their fee income, Lisbon based analyst Tiago Dionisio wrote in a note published today. Return on investment is expected to remain at 15 percent to 20 percent for the foreseeable future, he said. Foreign oil companies such as Total SA, Chevron Corp. and Exxon Mobil Corp. operating in the southwest African country were required to pay taxes in kwanzas, the local currency, from May. Since July 1 foreign companies must pay all domestic suppliers in kwanzas, and after Oct. 1 they have to pay foreign suppliers via Angolan bank accounts in local or foreign currency. (Bloomberg)