IMF approves US$1.4 billion loan for Angola

24 November 2009

Washington, USA, 24 Nov – The International Monetary Fund (IMF) Monday approved a loan of US$1.4 billion for Angola, the IMF said Monday.

The “stand by” loan for a 27 month period is aimed at helping Angola to replace its foreign reserves and help improve the balance of trade and budget, the IMF said noting that this was the second-largest loan ever granted to a sub-Saharan African country.

“The Angolan economy has suffered a significant shock due to a sharp drop in oil prices,” the IMF statement said, adding that this fall in revenues had led to a slowdown in the economy, exchange rate depreciation and a rise in inflation.

The statement added that, under the terms of the policies associated to the loan, the Angolan government is seeking to reduce its non-oil tax deficit significantly, whilst maintaining enough resources for infrastructure projects and social spending. (macauhub)