Ver Angola

Economy

IMF approves fifth review of country aid program and releases 772 million

The International Monetary Fund (IMF) approved the fifth review of Angola's financial adjustment program, allowing for the immediate disbursement of US$772 million, highlighting the authorities' positive vision and commitment to the program's policies.

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"The decision of the IMF board of directors allows for an immediate disbursement of US$772 million to Angola", reads the statement posted on the Fund's website, which states that the Angolan economy "is in transition to a gradual recovery of multiple shocks, including those induced by the covid-19 pandemic".

In the communiqué, the IMF added that "the authorities' political vision remains sound, and they remain committed to the economic program supported by the Expanded Financing Program."

The financial adjustment program was agreed with the IMF in December 2018, in the amount of 3.7 billion dollars, which was increased in September to around 4.5 billion dollars, of which around 3 billion dollars have already been delivered, to which adds the announced amount, totaling 3.9 billion dollars and lasts until the end of this year.

"The strong commitment of the Angolan authorities to sound policies under the agreement with the IMF allowed Angola to mitigate the worst effects of the pandemic; aided by the increase in oil prices, the authorities are supporting Angola's recovery by consolidating macroeconomic stability , while protecting the most vulnerable," said Deputy Executive Director Antoinette Sayeh, quoted in the statement.

In a flattering tone, the official adds that the Government and monetary policy authorities "are continuing to strengthen public finances and debt dynamics" and points out that they "have achieved a strong fiscal adjustment in 2020 and are on the right path to do so. even in 2021, at the same time that social and health expenses increase".

To recover from the economic downturn of the past five years and realize this year's growth forecast, “a strong recovery in non-oil growth is critical, and the authorities need to maintain momentum on structural reforms that sustain stronger diversified growth, improve the governance and fight corruption".

The approval of the fifth revision of the financial adjustment program, which increases the total already disbursed so far, comes at the same time that Angola announced that it requested the extension of the moratorium on the bilateral debt service until the end of the year.

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