Angolan government and IMF want to limit public debt to 90% of GDP

9 September 2019

The Government and the International Monetary Fund (IMF) are aiming to limit Angola’s government debt to gross domestic product (GDP) ratio to 90%, the budget secretary said in Cape Town.

Aia-Eza da Silva, speaking to Bloomberg on the sidelines of the World Economic Forum on Africa, which took place from 4 to 6 September in that South African city, also said he was “hopeful” that the IMF will approve the release of another tranche of the US$3.7 billion Extended Credit Facility.

“The IMF is concerned about public debt, which is around 90% of GDP and made it clear that this ratio should not be increased,” Silva said in the interview.

The Secretary of State expressed confidence in approving the third review of the financial assistance programme and said the fact that Angola had already received a total of US$1.24 billion in less than a year “was a great achievement. because it represents a lot of work.”

Angola’s public debt has increased significantly in recent years due to falling foreign currency oil revenues, which has led to a depreciation of the kwanza and a rise in inflation.

The IMF reported in June that Angola’s public debt stood at 91% of GDP in 2018 and added that it was a sustainable level, “as long as there are no major economic shocks,” according to the analysis of the first review of the credit facility, which Angola agreed at the end of last year. (Macauhub)