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Finance Minister Stresses Capital Market

June 30, 2014

Angolan minister of Finance, Armando Manuel, said Thursday in Luanda that Angola is taking major steps toward the creation of a strong capital market.

The Cabinet minister was speaking at the opening ceremony of the 4th Banking Forum, running under the theme "The Banking and Capital Markets".

Armando said that the event will enable the country to gain the best practices of a modern capital market and capable to attract more foreign investments in productive sector of the economy, which abide by the international specificities and macroeconomic strategic objectives.

The Cabinet minister stressed that the initiative offers a broad strategic sense between the banking and capital market entities along the reciprocal need to enhance the institutional mission of both parties.

He added that this will avoid the risk in financial applications and suggest a fair income and not speculative, guiding the investors in pursuit of economic growth linked to better distribution of national wealth.

Armando Manuel, therefore, noted that the national income is becoming more distributed as the savings accumulated by the workforce, both the individual perspective or the pension fund, are implemented in the capital of productive enterprises and Treasury securities. According to the Finance minister, the distribution of pension funds increases the pension of retirement and reduce inequalities between those living on salary and on capital income. In order for the implementation of savings and long-term investment become sustainable, the official said, it require to highlight two "golden rules".

The first concerns the relationship between the capital market and banking, extracted from lessons, either from the crisis recorded in 1928 and that of 2008.

While the second rule mentioned by the Finance Minister, refers to the relationship between the capital market and banking in which the savings applied to the capital markets should be linked directly or indirectly to the real sector of the economy to fund the growth of Gross Domestic Product (GDP).

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Source: AllAfrica

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