Angola and IMF sign financing agreement

30 September 2009

Luanda, Angola, 30 Sept – The International Monetary Fund (IMF) and the Angolan government Tuesday in Luanda signed a financing agreement, the amount of which was not publicised, but which the Angolan Economy Minister, Manuel Nunes Júnior said was the biggest funding amount by the IMF to a sub-Saharan African country in the last few years.

The head of the IMF mission Lamin Leigh said that the funding agreement would be applied over 27 months and reviewed quarterly.

Leigh also said that the final decision on the amount of funding granted would be taken at an IMF meeting in November and the mission would likely return to Angola in January or February to finalise the financing process.

The “Stand by” agreement is, unlike usual agreements, managed by the Government and its programme is the guideline for application of the IMF funds, namely the minimum 30 percent to be applied to the social sector.

The agreement also involves, according to Nunes Júnior and Leigh, “restrictive tax policies,” with a view to stabilising the country’s accounts.

Angola has the possibility of receiving US$500 million from the IMF, but hopes to get funding of US$2 billion. (macauhub)