Angola is trying to renegotiate its foreign debt, which at the end of last year reached 62.8% of Gross Domestic Product (GDP), the Secretary of State for Economy and Planning, Neto Costa said in Washington, according to the Voice of America.
Neto Costa told a conference of potential investors organised by the World Bank and the United States Angola Chamber of Commerce that the ratio of debt service to tax revenues was 89.4% at the end of last year, and Jornal de Angola reported that more recent figures showed that Angola’s debt may have already reached 67% of GDP.
The Angolan government announced this week it had requested the support of the International Monetary Fund (IMF), but limited to the coordination of economic policies to assist in “implementing the government’s programme of macro-economic stabilisation.”
The newspaper also quoted Neto Costa as saying that Angola’s foreign exchange reserves have been falling since 2013, when they were valued at about US$31 billion, to just over US$13 billion last year.
The governor of the National Bank of Angola told the conference that Angola needs to diversify its economy, as 95% of its resources come from oil sales and the country spends US$250 million per month to import food, for example. (macauhub)