Angola uses World Bank guarantee to take on new loan

9 October 2015

The government of Angola plans to borrow US$1 billion on the domestic and international market using a guarantee granted by the World Bank, said in Lima, Peru, the spokesman for the delegation of the Angolan Ministry of Finance.

The ministerial delegation spokesman participating in the annual meeting of the International Monetary Fund (IMF) and the World Bank was referring to a deal signed last July by the government of Angola and the World Bank, through which the country has already obtained a loan US$450 million.

“It was an agreement that included a liquidity support amounting to US$450 million that has already been disbursed and a guarantee for US$200 million, which will be used to raise funds of around US$1 billion,” said João Boa Quipipa.

Quipipa, who is also director of the Research and Relations Office of the Ministry of Finance, was speaking after the Angolan delegation’s meetings with the World Bank management and said this funding from the institution will count towards the 2015 budget, at a time when pubic accounts are strongly affected by the slump in oil prices, as well as towards “next year’s budget.”

The Angolan Ministry of Finance on 1 July announced an agreement for this loan, noting it was the first financial transaction with the World Bank for management and development of fiscal and public investment policies in Angola. (macauhub/AO)