IMF requests transparency from Angola and says that non compliance could delay funding

26 November 2009

Washington, United States, 26 Nov – Transparency in management of tax revenues in Angola will be a key element of the evaluation of the new standby agreement with the International Monetary Fund (IMF) and non-compliance could block funding to Luanda.

The warning came Wednesday from the main economists of the international financial institution during a telephone press conference after the announcement of the approval of the programme worth US$1.4 billion to be paid out in eight tranches over 27 months.

“Tax transparency, especially in terms of the activities of state companies is a key element of the programme and we have set out a programme about measures to increase it in a more wide-ranging context. This includes Sonangol, which took a relatively good role in all the discussions,” that led to the programme announced Tuesday said the head of the mission for Angola, Lamin Leigh.

Speaking from the headquarters of the IMF in Washington, Leigh noted that the authorities had already given their consent to the publication of reports from the Fund’s supervising team and the remaining documentation.

Angola requested funding from the IMF in June, “to stabilise the economy” due to difficulties felt on a fiscal level and in its balance of payments, as a result of the collapse of oil prices on international markets, said Sean Nolan, a senior consultant for the Africa department of the IMF.

Two mission to Angola followed until the approval of the agreement, which expects at least 30 percent of state expenditure to go to the social sector during the programme period.

The programme is based on budgetary efforts, for 2010, to make enough resources available for social spending and essential infrastructure projects, normalising condition on the exchange market and protection of the financial sector. (macauhub)