loans and grants

IMF board approves $487.5-million disbursement to Angola

Reuters
IMF board approves $487.5-million disbursement to Angola

IMF. The International Monetary Fund headquarters building is seen in Washington, April 8, 2019.

File photo by Yuri Gripas/Reuters

The International Monetary Fund says the COVID-19 pandemic continues to impact Angola's economy and population, while oil production and prices remain weak

The International Monetary Fund (IMF) said on Monday, January 11, its executive board approved a disbursement to Angola of about $487.5 million after completing a 4th review of the African oil exporter’s $3.7-billion loan program.

The Fund said that the COVID-19 pandemic continues to impact Angola’s economy and population, while oil production and prices remain weak.

But it said that Angolan authorities “have maintained a robust policy response in the face of these challenges and remain resolutely committed to the program,” noting the December passage of a 2021 budget that includes non-oil revenue gains and restraints on non-essential expenditures.

Angola’s finance minister, Vera Daves de Sousa, told the Reuters Next conference on Monday that she expected more than $700 million in the next IMF tranche after securing 3 years of payment relief from Chinese creditors.

Angola last September secured a $765-million augmentation of total access under the Extended Fund Facility program, which was initially approved in December 2018.

“The stabilization of public finances remains the cornerstone of the [Angolan] authorities’ strategy,” IMF Deputy Managing Director Antoinette Sayeh said in a statement.

“The authorities achieved strong fiscal adjustment in 2020. Their 2021 budget consolidates the non-oil revenue gains and expenditure restraint of the 2020 budget, while protecting priority health and social spending.” – Rappler.com