Angola is negotiating a rollover of a 1 billion US dollars loan with JPMorgan Chase & Co., part of efforts to manage maturing debt as the country’s bond yields retreat from recent peaks, as reported by Bloomberg. The final terms, including interest rate, maturity, and collateral, are still under discussion.

The loan traces back to a total return swap agreement struck in December last year, supported by nearly 2 billion US dollars of the nation’s dollar bonds and carrying an annual cost of around 9 percent. The facility became a focal point in April when Angola had to provide an additional $200 million in collateral following a margin call linked to falling oil prices; the funds were returned a month later.

Recent developments in Angola’s debt market have given the government more flexibility. Dollar bond yields, which surged to record highs earlier this year, have eased considerably. Angola’s 2032 bonds are now trading just below 10 percent, down from almost 15 percent in April, Bloomberg data shows. Last month, the government tapped international markets with a $1.75 billion eurobond, pricing five- and 10-year notes at 9.25 percent and 10.125 percent, respectively.

Despite debt standing at about 55 percent of gross domestic product—below the 60 percent limit set by Angola’s fiscal law—international observers warn of ongoing short-term financing challenges. The IMF noted in a September report that sizable external obligations coming due are keeping pressure on the country’s fiscal position.