21 August 2018

Angola Requests IMF for Financial Aid

Photo: International Monetary Fund
International Monetary Fund logo.

Luanda — The Angolan government has requested the International Monetary Fund (IMF) for financial aid and an adjustment to the assistance programme it has provided to the country.

According to a press note from the Finance Ministry that has reached ANGOP on Monday, the request for financial aid aims at facing the current economic evolution, with a view to facilitating the implementation of the Macroeconomic Stabilization Programme and the 2018/2022 National Development Plan.

The Angolan government request was made during the working visit of an IMF technical mission made to the country last August 1-14, having been invited to visit this African nation again in 0ctober 2018 to kick off negotiations on two-year Extended Fund Facility (EFF), which could be extended for one more year, if necessary.

During the IMF working visit it was concluded that the macroeconomic stabilization policies and reforms being applied by the Angolan government are suitable to the economic growth promotion and diversification, despite the present harsh environment.

It was also noted that the growth rate of the real Gross Domestic Product (GDP) for 2018 has turned out to be more modest than expected, which reflects a remarkable reduction in the crude oil and gas output.

Due to the aspect aforementioned, it is expected a negative impact on the domestic tax revenues and external accounts, as well as an increase in the current account deficit.

For two weeks the Angolan government and IMF mission assessed the current economic evolution of the country, the financial and economic perspectives and discussed the best way for the support to the policies and economic reforms outlined in the two abovementioned programmes.

The negotiations over the Policy Coordination Instrument (PCI) had also topped discussions between the two parties.

PCI is a non financial programme, aimed at providing technical assistance for the implementation of measures embodied in the main macroeconomic management documents of the country such as the Macroeconomic Stabilization Programme initiated in January 2018.

The PCI also aids to increase the credibility of Angola abroad, whose positive effects help to lure Foreign Direct Investment.

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