The reaction of the Ministry of Finance (MINFIN) follows the announcement by the International Monetary Fund (IMF), Monday, of the disbursement of US 487.5 million dollars to the Portuguese-speaking country, affected by the covid-19 pandemic and weak revenues in the oil industry.
According to the Government, the program aims to achieve and consolidate the external and fiscal balance of the economy, as well as to create the conditions for an effective diversification of the economy, in order to promote in Angola a sustained and sustainable growth of the economy, led by the private sector.
In this assessment, highlights the note published on the MINFIN website, "once again", the IMF Board of Directors "praised the Angolan executive for his strong response to the negative shocks caused by covid-19 in the Angolan economy and population".
"In particular, the IMF praised the prudent fiscal adjustment carried out by the Angolan executive in 2020, which involved gains with respect to non-oil tax revenues and a decrease in non-essential expenses, while preserving spending on essential expenses such as health, education and other social sector domains ", reads the statement.
The IMF also highlighted the successes in reshaping Angola's public debt service profile and adhering to the Debt Service Suspension (DSSI) initiative, which will lead to significant relief in terms of debt service and reduce risks related to its sustainability.
The note also highlights that the IMF also valued the executive's efforts to normalize the foreign exchange market, having said in this regard that the easing of the exchange rate served as an important shock absorber caused by the fall in the price of oil in the international market and the consequent shortage of foreign exchange that Angola started to register.
With the new tranche disbursed by the IMF, the total amount made available since the beginning of the program, on December 7, 2018, changes to 2.9 billion dollars, with the total financing expected by the end of the EFF (Financing Program) Expanded) corresponds to 4.4 billion dollars.
