IMF mission in Angola for talks on second tranche of US$1.4 billion loan

29 July 2010

Luanda, Angola, 29 July – The International Monetary Fund (IMF) Wednesday in Luanda began assessment of the loan agreement for stabilising Angola’s balance of payments to the value of US$1.4 billion, the Angolan government said.

The IMF mission arrived in Luanda to assess the execution of the agreement, signed in 2009, after the first tranche of the loan had been handed over, with the second tranche scheduled for after an assessment at the beginning of the year.

These assessments are carried out quarterly as stipulated in the standby agreement, which is the most common policy for IMF loans, used since 1952 in countries with short term balance of payment problems.

The Angolan Finance Minister, Carlos Alberto Lopes, noted Thursday of the new assessment that it was being carried out, “at a time when Angola’s international net reserves are balanced,” at around US$15 billion.

At the beginning of the financial crisis in 2008, Angola’s international reserves stood at around US$20 billion, falling at the start of 2009 to US$12 billion.

Lopes also said that Angola had fulfilled all the requirements of the agreement and its commitments to the IMF, on which the delivery of the second tranche depends.

No date was given for conclusion of this round of assessment, but the agreement and delivery of subsequent tranches of the loan depend on its results. (macauhub)