Angola cancels consultations with the International Monetary Fund

13 March 2007

Luanda, Angola, 13 March – The Angolan government has decided to cancel its consultations with the International Monetary Fund (IMF) and informed the head of the mission for Angola, Sangeev Gupta of that decision on February 13, Voice of America reported.

In a letter the Angolan finance minister, José Pedro de Morais said that his government had concluded that an IMF program “will not help Angola to preserve the economic and social stability it has gained so far.”

Pedro de Morais also noted that although it had been exposed to difficult circumstances, “the government of Angola managed, successfully, to implement an internal macroeconomic stabilization program, which it plans to continue, without being subjected to restrictive conditions.”

The Angolan finance minister also noted that in the last three years, “Angola’s economy has grown, in real terms, by 13 percent per year, while inflation has fallen dramatically.”

De Morais also mentioned that the increase in Angola’s foreign reserves would allow the country to quickly pay off its remaining foreign debt, and it was thus unnecessary to make use of outside credit.

The minister concluded by saying that he recommended a visit by the IMf mission in February be cancelled, but assured the IMF that Angola would continue to respect its obligations in relation to the IMF and maintain a constructive relationship.

According to Voice of America, a reply came from the IMF on February 23, in which the director of the Africa department suggested the mission be delayed until May. (macauhub)