IMF says Angola does not need more loans

17 July 2014

The International Monetary Fund (IMF) has ruled out the possibility of providing further loans to Angola as it has found “significant improvements” in the macroeconomic climate, management and transparency of national accounts, Angolan state daily newspaper Jornal de Angola reported Thursday.

“Angola does not need new loans from the IMF to support its economy. It is progressing very well on a macroeconomic level,” said the head of the IMF mission in Angola, Ricardo Villas, at the end of a two-week visit to the country as part of annual consultations under the terms of the IMF’s Article 4.

In November 2009 Angola requested an IMF loan of US$1.4 billion, which was granted as a Stand-By Agreement (SBA) intended to re-establish its foreign reserves after a drop in the price of oil on the international market. This programme was in place until 2012.

“The IMF agreed a loan of that amount to the Angolan authorities because they deserved it based on commitment and high performance achieved within the framework of the reform and stabilisation programme supported by the Fund,” said Villus.

The IMF projects Angola’s real gross domestic product (GDP) to grow by 3.9 percent in 2014 with a slowing of agricultural production and a temporary drop in international oil prices in the first half of this year. In 2015 the IMF estimates that real GDP growth will rise to 5.9 percent whilst real non-oil GDP will remain robust and oil production will see a recovery.(macauhub/AO)