IMF approves $487.5m disbursement to Angola

12 Jan 2021

The International Monetary Fund has approved a disbursement to Angola of around $487.5m following a fourth review of the African oil exporter’s $3.7bn loan program.

The IMF stated that the coronavirus crisis continues to affect Angola’s economy, and oil production and prices are still weak.

However, the Fund stated that Angolan authorities “have maintained a robust policy response in the face of these challenges and remain resolutely committed to the program,” highlighting a budget for this year that includes non-oil revenue gains and restraints on non-essential expenditures, Reuters reports.

On Monday, Angola’s finance minister, Vera Daves de Sousa said she forecasts over $700m in the upcoming IMF tranche after acquiring payment relief from Chinese creditors for three years.

She went on to add that in future, Angola wanted to maintain its relationship with China and all its “partners”, but the priority would be to attract foreign direct investment.

“We want to do more with China and all our partners but to see some money coming in and staying to create value, create jobs. What we are intending to do is shift a little bit, rebuild our relationship with our partners,” Daves de Sousa stated.

In addition, Angola is part of the G20 group's Debt Service Suspension Initiative (DSSI), which since April has helped 46 countries defer $5.7bn in 2020 debt-service payments, reports Business Day.

“Of course, we need to do more,” Daves de Sousa added. “The countries need to do their own homework to look at the debt stock and how to optimise it, reprofile it and attract fresh capital.”

In September last year, Angola secured a $765m augmentation of total access within the Extended Fund Facility program, which was approved back in December 2018.

IMF Deputy Managing Director Antoinette Sayeh said in a statement: “The stabilisation of public finances remains the cornerstone of the (Angolan) authorities’ strategy.

“The authorities achieved strong fiscal adjustment in 2020. Their 2021 budget consolidates the non-oil revenue gains and expenditure restraint of the 2020 budget, while protecting priority health and social spending.”