Angola receives the largest loan granted by the IMF to countries in sub-Saharan Africa

21 December 2018

The US$3.7 billion loan granted by the International Monetary Fund (IMF) to Angola is the highest ever granted to a country in sub-Saharan Africa, the institution’s director-general said in Luanda.

Christine Lagarde, who was speaking at the Presidential Palace at a joint press conference with President João Lourenço, said that this amount was enough to support the ongoing reforms in Angola, with a focus on fiscal consolidation and macroeconomic stability.

Lagarde’s visit, which began on Wednesday, comes two weeks after the IMF board approved a US$3.7 billion Comprehensive Credit Facility in Washington to support reforms in Angola.

On 1 August, the Government made a request to the IMF to start talks on an economic programme funded under the EFF (Extended Fund Facility) and requested the adjustment of the IMF support programme by adding a financing component.

This request for financial assistance follows an agreement negotiated by the Angolan government in 2008, which culminated in 2009 with the signing of a US$1.4 billion financial assistance agreement to solve balance of payments problems resulting from the country’s economic and financial crisis.

The President of Angola said that the loan granted by the IMF offers credibility to the ongoing reforms in the country.

Lourenço said that although the reforms were real, they lacked the “seal” of a credible international financial institution, according to the Angop news agency.

According to the Angolan Head of State, with the IMF’s seal of approval, which investors have been waiting for and has just arrived, “the government’s programme is more credible and, of course, the arrival of international investors is expected soon.”

The Angolan President also said that the State had already received about US$1 billion of the total amount granted by the IMF. (macauhub)