Angolan government informs IMF it is preparing legal framework for future sovereign fund

30 September 2010

Washington, United States, 30 Sept – The Angolan government is preparing the legal framework for the future Angolan sovereign fund, which will have “conservative management,” focused on maintaining assets, according to a document form the Angolan government sent to the International Monetary Fund (IMF).

“This method of management will mainly be applied at the launch, up to the development of a strong framework and asset management capacity,” said the memorandum on economic and financial policy under the terms of the stand-by agreement with the IMF, published Tuesday in Washington.

According to the Institute of Sovereign Funds, Angola had been due to launch this financial instrument in 2009 to manage oil revenues.

In the same document the Angolan government noted that the plan to issue bonds, the first step of which was taken when Angola’s debt was given a rating, as well as loans related to specific projects, would respect the maximum debt level outlined by the programme.

At the end of this year a medium-term strategy is due to be concluded, with the technical assistance of the resident US Treasury Department advisor and IMF experts, which together “will be brought together with the state budget to ensure that macroeconomic policies are consistent with a sustainable debt trajectory.” (macauhub)