Luanda — The International Monetary Fund (IMF) has taken into account the adoption of measures aimed at the most vulnerable families, during the implementation of its financing program, in the countries in which it operates, particularly in Angola.
The representative of this financial institution in the country, Victor Lledo told ANGOP, in an interview to be published this Monday (July 1st), that in several IMF programs the requirement for the Government to guarantee minimum levels of spending in social areas, such as health and education, or expanding access to social protection systems for the most vulnerable groups.
According to Victor Lledo, this initiative essentially aims to mitigate the negative impact of Monetary Fund measures, in the short term, on family income.
Furthermore, he continued, the IMF program foresees a set of measures that aim to help countries restore macroeconomic stability and at the same time make their economy more resilient to future shocks.
Asked about the objections of some citizens and experts regarding the measures applied by the Monetary Fund, the representative replied that, when countries resort to IMF loans, through a program, they generally do so because they are facing an economic crisis and financial.
"So, there's nothing wrong about that since that's our role,' he explained.
This process, he clarified, often requires the implementation of difficult and unpopular measures in the short term, but which leads to an improvement in the country's economic situation in the medium and long term.
He acknowledged that it is understandable that the population has a negative assessment of the IMF's actions, since they have to bear the possible initial negative effects and taking into account that there is a time lag between the implementation of the measures and the results.
According to Victor Lledo, the measures implemented during the programs take into account the socioeconomic reality of each country, with government authorities being the main agents in identifying difficulties and, together with the Fund team, seeking the best solutions.
As an example, he concluded, the Extended Agreement Under the Expanded Financing Program (EFF), signed with Angola, in December 2018, was based on the measures provided for in the Macroeconomic Stabilization Program, implemented at the beginning of that year.
The Expanded Financing Program was approved by the IMF Board of Executive Directors on December 7, 2018, with a duration of three years.
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Initially, this program provided for a financial package equivalent to around 3.7 billion US dollars, but, due to the emergence of the Covid-19 pandemic, and at the request of the Angolan Executive, the IMF approved an increase in access of 72 % of share.
This approval occurred as emergency funds, increasing the cumulative amount from 361% to 433% of the quota.
Specifically, the Fund granted Angola a corresponding disbursement of Special Drawing Rights (SDRs) equivalent to around 765 million US dollars, increasing the initial financing from USD 3.7 billion to around 4.4 billion.
This increase aimed to strengthen the country in the fight against the Covid-19 pandemic and mitigate its health, economic and social effects, as well as ensuring the implementation of the lost reforms that were being developed. ASS/QCB/DOJ
