Angolan government decides to continue with IMF stand by agreement until its conclusion

28 June 2011

Luanda, Angola, 28 June – The Angolan government has decided to continue with the execution of the stand-by programme it signed in October 2009 with the International Monetary Fund (IMF) under the terms of which it was granted a loan of US$1.4 billion, Angolan newspaper O País reported.

The paper said that two months ago, on a visit to Washington, the deputy minister for Planning, Job Graça alluded to the possibility to transforming the “stand-by agreement” into a “Precautionary Stand-By Arrangement,” which would lead to the cancellation of the final tranche, estimated at around US$400 million.

This idea, O País said, would allow Angola to save on paying costs related to interest and other services.

In January, during the fourth review of the programme signed in October 2009, Angola received a tranche of US$178 million, which increased the amount paid out by the IMF to Angola to US$1.07 billion.

According to senior officials the Angolan government considered the possibility of a precautionary agreement after it found that the programme it agreed with the IMF had resolved the problems that affected the balance of payments, but ended up deciding to take the programme to its conclusion.

Ten days ago, the Angolan government and the IMF ended the fifth review of the programme and, according to members of the Angolan team, “the IMF report will reflect the progress that we have been seeing since last year.” (macauhub)