The Executive Board of the International Monetary Fund announced on Wednesday that it had completed the fifth review of Angola’s economic programme supported by an extended arrangement under the Extended Fund Facility.
The board’s decision allows for an immediate disbursement of SDR 535.1 million – about $772 million, bringing total disbursements under the arrangement to SDR 2,678.3 billion (about $3.9 billion), according to a statement.
Angola’s three-year extended arrangement was approved by the Executive Board on December 7, 2018, in the amount of SDR 2.673 billion (about $3.7 billion at the time of approval).
It aims to restore external and fiscal sustainability, improve governance, and diversify the economy to promote sustainable, private sector-led economic growth.
The IMF said at the time of the third review, it also approved the authorities’ request for an augmentation of access of SDR 540 million (about $765 million at the time of approval) to support the authorities’ efforts to mitigate the impact of COVID-19 and sustain structural reform implementation.
Angola is transitioning to a gradual recovery from the COVID-19 shock amid higher global oil prices, low levels of reported COVID-19 infections and the start of a vaccination campaign, according to the statement.
The Deputy Managing Director and Acting Chair, Ms Antoinette Sayeh, said, “The Angolan authorities’ strong commitment to sound policies under the IMF-supported arrangement has enabled Angola to mitigate the worst effects of the pandemic. Aided by higher oil prices, the authorities are supporting Angola’s recovery by consolidating macroeconomic stability while protecting the most vulnerable.
“The authorities are continuing to strengthen public finances and debt dynamics. They achieved a strong fiscal adjustment in 2020 and are on track to do the same in 2021, while increasing health and social spending. By saving the bulk of oil revenue windfall this year, they are helping to sustain the planned rapid reduction in public debt vulnerabilities. Their decision to request an extension of debt service relief under the Debt Service Suspension Initiative through end-December 2021 is welcome.”