"The approval of the fifth revision of the Expanded Financing Program is another very relevant fact to be registered in the context of the progress we have made in the management of the country's economy and which demonstrates the confidence of the international financial community in the reform program that the executive has been developing since the end of 2017", reads a press release released in Luanda.
On Wednesday, the IMF approved the fifth review of Angola's financial adjustment program, allowing for the immediate disbursement of US$772 million, underscoring the authorities' positive view and commitment to the program's policies.
"The decision of the IMF board of directors allows for an immediate disbursement of US$772 million to Angola", reads the statement from the Fund, which states that the Angolan economy "is in transition to a gradual recovery from 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."
In this assessment, says the Government, "once again, the Board of Directors of the IMF praised the Angolan government for its strong response to the negative shocks caused by covid-19 in the Angolan economy and population, and in particular praised the prudent fiscal adjustment undertaken. carried out by the Angolan government in 2020, which involved gains in terms of non-oil tax revenues and a reduction in non-essential expenses, while preserving spending on essential expenses such as health, education and other areas of the social sector".
In the statement of reaction to the approval that allows the immediate availability of US$772 million, the finance minister's office emphasizes that "the IMF notes that the Angolan economy is on the right path to obtain the same or better fiscal results in 2021" and highlights the "successes in reformulating the profile of Angola's public debt service".
The Government, concluded in the statement, "reaffirms its commitment to deepen the structural reforms underway in the country, with the aim of restoring fiscal sustainability indicators, improving governance and accelerating the process of economic diversification, in order to meet the pressing needs of our population and mitigate the impacts of any external shocks".
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 amount now announced, totaling 3.9 billion dollars, and lasts until the end of this year.