The World Bank has granted a loan to Angola in the amount of US$450 million and a guarantee of US$200 million dollars, said the World Bank and the Angolan Ministry of Finance in a statement issued Wednesday in Luanda.
The guarantee of US$200 million will allow the Government of Angola to secure loans of between US$300 million US$1 billion on the international market.
This operation, according to the statement from the Ministry of Finance, aims to “strengthen financial management” and create the fiscal space needed for “better protection of the most vulnerable (people).”
According to the statement this will be achieved by supporting the modernisation of the tax administration system and tax policies, strengthening public investment efficiency and effectiveness notably through a “social policy to counteract the gradual phasing out of the fuel subsidy,” a public subsidy that costs over 3.0 percent of Gross Domestic Product (GDP) every year. (macauhub/AO)