Angola calls for IMF financing of US$4.5 billion

27 August 2018

Angola will discuss with the International Monetary Fund (IMF) a financing programme of US$4.5 billion under the assistance programme requested by the Government, the Angolan Finance Minister said in Berlin.


According to the Angop news agency, Minister Archer Mangueira revealed that the funding will be made available in three tranches of US$1.5 billion per year, with a view to implementing the Macroeconomic Stabilisation Program (PEM) set out by the Angolan Government for the period between 2018 and 2022 .


The Angolan Finance Minister said that the Extended Fund Facility (EFF), which comes after the agreement negotiated by the Angolan government and the IMF in 2008, is fundamentally aimed at consolidating the fiscal adjustment.


The ongoing tax reform programme, he added, focuses on the stability of net international reserves, which has ensured more efficient operation by economic agents.


In the financial system, he added, the government intends to continue regulating and supervising the banking system, in order to reduce bad credit and strengthen the compliance system.


Archer Mangueira pointed out that with the current macroeconomic stabilisation policies, the government intends to “change the path of public debt” of the State, reducing the fiscal deficit in the general budget from 7% in 2017 to 3.4% in 2018 .


The minister said the main intention of the planned tax reforms is to allow the collection of more revenues in the non-oil sector, whose activity has registered significant increases in Angola’s Gross Domestic Product (GDP).


The IMF confirmed on 21 July that it had received a formal request from the Government of Angola to begin discussions on an economic programme financed by the international institution under a support programme.


Tao Zhang, deputy director of the IMF, said negotiations for the loan should begin “as soon as possible” while Angola’s Finance Minister noted that they will start as early as October. (macauhub)