IMF grants US$3.7 billion in funding to Angola

11 December 2018

The International Monetary Fund (IMF) has approved a US$3.7 billion financial aid programme to Angola, of which US$990.7 million will be released immediately, according to a statement released in Washington.

“The remaining amount will be released throughout the duration of the programme, subject to semi-annual reviews,” said the statement announcing the decision from the Board of the International Monetary Fund.

The extended agreement reached with Angola under the Extended Fund Facility (EFF) aims to support the country’s economic reforms and accelerate private sector-led economic growth by improving governance, reducing the risks associated with public enterprises and addressing obstacles to competitiveness.

“Tax consolidation is a central element of the programme. The authorities’ plan is to increase non-oil revenues, including the introduction of a value added tax, by eliminating subsidies,” the statement said, adding that “safeguarding the stability of the financial sector is key to the success of the programme, with the authorities planning to improve governance and credit risk management in public banks.”

IMF Director-General Christine Lagarde is due to visit Angola from 20 to 22 December and has scheduled meetings with institutional representatives, including the government’s economic team. (macauhub)