IMF funding to Angola rises to US$514.5 million

11 May 2010

Washington, United States, 11 May – The International Monetary Fund (IMF) said Monday in Washington it had approved a loan of US$171.5 million to Angola, raising its total funding to the country to US$514.5 million.

The approval was given at a meeting of the IMF board, which gave a positive assessment of the Angolan economic programme supported by the stand -by agreement.

In the statement, the assistant director of the IMF, Murilo Portugal applauded the re-launch of foreign exchange auctions, noting it was a priority to eliminate administrative controls on the monetary exchange market once measures to boost liquidity were introduced.

The agreement with Angola was approved in November 2009 to help the country overcome the effects of the international economic crisis, which reduced Angola’s oil revenues. It outlines loans to the country of US$1.3 billion over a 27-month period.

In the first review since the agreement was approved, the IMF board granted the non-observance of two of the agreement’s targets: The non-accumulation of new external and domestic payment arrears.

The increase of the program’s external borrowing ceiling can be undertaken in light of Angola’s large infrastructure needs and low debt burden, but it will be essential that the associated projects are soundly appraised and well implemented, and that the debt created is effectively managed,” it said.

After stagnation in 2009, in April the IMF updated its projections for Angola, pointing to economic growth of 7.1 percent in 2010 and of 8.3 percent in 2011. (macauhub)