0

Executive pronounces on the IMF's fifth review of Angola

Junior  Nunes Manuel Manuel Nunes Junior, Minister of State for Economic Coordination

Mon, 14 Jun 2021 Source: angop.ao

The Minister of State for Economic Coordination, Manuel Nunes Júnior, spoke Monday, June 14 on Angola's position in relation to the fifth assessment by the International Monetary Fund (IMF) of its Expanded Assistance Program (EFF), aimed at economic projects of the country, in particular.

The Executive Council of the International Monetary Fund (IMF) concluded, last Wednesday (June 09), the fifth assessment of Angola's economic program, supported by an extended agreement within the scope of the Extended Financing Program (with a longer term).

The Board's decision allows for an immediate disbursement of SDR 535.1 million - about USD 772 million, bringing total financing under the agreement to SDR 2,678.3 billion (about USD 3.9 billion), according to the publication from the IMF to which ANGOP had access, from its website.

Angola's extended agreement under the EFF (English acronym), for three years, was approved by the Executive Board of the IMF, on December 7, 2018, in the amount of SDR 2.673 billion (about USD 3.7 billion at the moment of approval).

Its objective, according to a publication on the organization's website, is to restore external and fiscal sustainability, improve governance and diversify the economy to promote sustainable economic growth led by the private sector.

The fourth revision took place in early January this year, with an immediate disbursement of US$487.5 million, bringing total disbursements under the agreement to around US$3 billion.

At the time of the third review, the Executive Board also approved the authorities' request for an increase in access to SDR 540 million (about USD 765 million at the time of approval) to support the authorities' efforts to mitigate the impact of Covid-19 and sustain the implementation of the structural reform.

At the conclusion of the review, the Council also validated the request of the authorities for the resignation of non-compliance with the continuous performance criterion on the non-accumulation of arrears in the payment of external debt, by the Central Government and the National Bank of Angola.

According to the communication, the Executive Council also agreed with the authorities' request to modify some performance criteria, indicative targets and structural references.

Following the Executive Council's discussion on Angola, Antoinette Sayeh, deputy executive director and interim president of the IMF, underscored the Angolan authorities' strong commitment to sound policies under the IMF-supported agreement, which allowed the country to mitigate the worst effects of the pandemic .

"Helped by higher oil prices, the authorities are supporting Angola's recovery, consolidating macroeconomic stability and protecting the most vulnerable," acknowledged Antoinette Sayen.

The International Monetary Fund is an organization that aims to stabilize and act directly in the control of the global economy. It was created at the Bretton Woods conference in 1944 with the purpose of rebuilding Europe after World War II.

This institution supports the adjustment process through an Expanded Financing Program (EFF), when a country faces serious medium-term balance of payments problems due to structural deficiencies that take time to resolve.

Source: angop.ao