Angola Imf Agreement

Angola`s Finance Ministry in Luanda on Tuesday will sign an agreement on the management of public finances with the International Monetary Fund (IMF) for the implementation of a technical assistance programme that also includes planning the macroeconomic framework for fiscal purposes and improving the management of public investments, according to an official statement. „The authorities have secured debt-restructuring agreements by several major creditors to reduce the risks associated with debt sustainability. Continued vigilance in the management of public debt is essential to reduce these risks in a context of increased volatility in oil prices. According to the IMF, Luanda reached an agreement in June with one of its main creditors, which analysts have identified as a CBD. The agreement provides for a three-year deferral of capital payments for three loans, with the largest loan to be repaid over seven years. An agreement with a second major creditor, identified by analysts as EximBank, will be drawn up with a similar re-profiling of key payments, the IMF said in the report. On Friday, Angola said it was close to concluding debt agreements with a number of Chinese banks and government agencies. „Continued structural reforms are essential to diversify the economy and lay the foundations for private-sector-supported economic growth. The government must stand firm in improving the business environment, strengthening governance and fighting corruption. On 12 December 2018, the Executive Board of the International Monetary Fund (IMF) approved a three-year SDR 2.673 billion (approximately $3.7 billion, or 361% of Angolan quota) to support Angola`s economic reform programme. Angola`s economy has been hit hard by a triple external shock caused by COVID-19. The shock caused economic and health crises compounded by falling oil prices in the face of Angola`s dependence on oil exports. In response, the authorities have taken decisive action to combat the effects of the shock and remain very committed to the programme, including the fight against corruption.

In the fiscal area, the National Assembly adopted an additional Conservative budget that includes measures on non-oil revenues and the intensification of non-essential spending, while leaving room for essential spending on health and the social safety net. In the monetary field, the Central Bank has taken several steps to reduce liquidity and credit constraints to help the private sector cope with crises. The last Article IV board consultation took place on 18 May 2018. The articles relating to Angola are listed below. . The International Monetary Fund (IMF) on Thursday (December 5th) approved, following the second revision of Angola`s economic programme, the third payment of $247 million to bring the total distributions under the reform programme agreed with the Angolan government to $1.48 billion.

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