Luanda — The International Monetary Fund (FMI) praised the measures adopted by the Angolan government in stabilizing the macroeconomic conditions and implementing actions aimed for the diversification of the economy, so as to mitigate the impact of the oil price drop recorded in the international market.
According to a press note from National Reserves Bank of Angola (BNA), which quotes the IMF, the IMF concluded on January 23 of 2017 the consultation held in Angola under the article IV consultations.
The note reads that the referred consultation was held basing on the collection of economic and financial information, besides discussing previously with the Angolan authorities as regard to the economic progress and economic policies of the Angolan government.
According to IMF, quoted by BNA, the impact of the oil price drop was one of the critical reasons of substantial reduction in the tax revenues and the economic slowdown, which accelerated the inflation and unbalanced the foreign exchange market.
The IMF administrators highlighted the remarkable consolidation carried out until the date of the primary non- oil balance, but the institution also underlined that in the future a continued budgetary adjustment will be necessary to place the public debt in a clear descending trajectory and simultaneously support the short- term economic growth.
The IMF also recommended the strict assessments of the quality of the assets and praised the actions carried out by the Angolan authorities to ensure the recapitalization of the smaller banks.