The Angolan government is reportedly close to finalizing a deal with Chinese creditors to restructure the $20.1 billion of debts that Luanda owes Beijing, according to an unnamed senior government official quoted by Reuters.

This is one of the first public acknowledgments from either the Angolan or Chinese governments that a debt deal is now close at hand. Last week’s announcement by the IMF that it would provide Angola with a $1 billion financing package provided another clue that the Chinese-Angolan negotiations were proceeding smoothly. Previously, the IMF had said that it would not provide additional financing to Angola until the government had reached a debt restructuring plan with Chinese creditors. The concern at IMF HQ in Washington, D.C. was that any new funds would simply be used to repay the Chinese.