Angolan government prefers to take on debt from multilateral institutions

10 May 2019

The Angolan government will favour debt contracted with multilateral institutions, such as the World Bank and the International Monetary Fund (IMF), under a strategy to reduce the country’s levels of indebtedness, the finance minister said in Luanda.

Archer Mangueira, who was speaking at the presentation in the Angolan capital of the Report on the Regional Economic Outlook for Sub-Saharan Africa, released in Washington in April, said that “the debt strategy recommends that external financing be contracted with multilateral institutions.”

“Reducing public debt is a challenge for everyone,” said the minister, who in March saw the Council of Ministers approve the Annual Debt Plan.

The document gives a snapshot of public debt at two different moments: the first between 2010 and 2014, marked by the stability of debt at around 33% of GDP and the concentration of bilateral creditors in the debt portfolio, where they stood out China and Brazil.

The second moment, which came after 2014, marked by the beginning of the economic, financial and foreign exchange crisis caused by the fall in oil revenues, “is determined by a continuous increase in the stock of public debt, which went from 39% in late 2014 to 84% of GDP in December 2018.”

The Minister of Finance, quoted in the Jornal de Angola daily newspaper, pointed out that in the last three years the Angolan economy has experienced successive fiscal deficits, which has resulted in an increase in public indebtedness that is expected to change with ongoing fiscal consolidation and support from the Extended Fund Facility (EFF) established with the International Monetary Fund. (Macauhub)