The International Monetary Fund (IMF) has approved new financing of US$248.15 million for Angola following the completion of the first evaluation of the country’s support programme, the institution said in a statement released on Wednesday.
The statement added that with this new financing the total amount granted to Angola under the Extended Credit Facility (ECF) is US$1.24 billion.
The ECF was approved on 7 December 2018 to run for three years, providing access to total funding of US$3.7 billion and technical assistance to support the Macroeconomic Stabilisation Programme and the 2018-2022 National Development Plan.
The statement noted that the Angolan authorities have shown a strong commitment to implement the Fund’s support programme but added that exogenous factors, such as oil price volatility, are hindering reform efforts.
“The authorities responded in a decisive way (to these factors) with the presentation of a more conservative State Budget for 2019,” it said.
The IMF stressed that fiscal consolidation will continue in 2019, through the reduction of total expenditure and the mobilisation of non-oil revenues, including the introduction of Value Added Tax (VAT/IVA). (Macauhub)