Portugal and Brazil to loan US$400 million to Angola

27 January 2010

Lisbon, Portugal, 27 Jan – Portugal has committed itself with the International Monetary Fund (IMF) to loan Angola US$200 million as part of the US$2.35 billion loans set up by the IMF, Portuguese newspaper Diário de Notícias, reported.

The paper said that it had confirmed the operation with Luanda and Brasilia and added “it will require Portugal to get into increasingly greater foreign debt, in a context of increasing interest rates, in order to then loan the cash to Eduardo dos Santos´government.”

Citing the technical information of the IMF loan to Angola and non-identified Angolan sources, Diário de Notícias said that Portugal and Brazil had each committed to providing US$200 million.

The loan to Angola is aimed at helping Luanda to face up to the country’s foreign deficit, as it is currently facing a crisis in its balance of payments due to a significant drop in crude oil exports and the price of oil at the end of 2008 and 2009.

Of the total loan, the IMF will provide Angola with US$1.4 billion for a period of 27 months, the World Bank will provide a further US$400 million and donor nations are expected to provide US$600 million. (macauhub)