Angola seen as greater risk after declining IMF support

6 July 2016

The decision of the Angolan government to do without the financial support of the International Monetary Fund (IMF) exacerbates the risks of its sovereign debt position unless it can find alternative sources of funding, said Fitch Ratings.

The credit rating agency said in a statement issued Tuesday in London it had identified deteriorating external position when it reviewed the Outlook on Angola from Negative to Stable.

The IMF spokesman said last week in Washington Angola had brought an end to talks on an economic diversification programme, which included financial support, initially requested by the Angolan government last April.

“Taking into account the fall in oil prices observed since 2014, we predict that this year Angola will have a current account deficit of 13.9 percent, after a deficit of 8.7 percent in 2015 and a surplus in 2013,” the statement said. (macauhub/AO)