Africa Angola Economy Finance

IMF, Angola agreement to speed up economic reforms – Minister

The agreement with the International Monetary Fund (IMF) will make the ongoing reform process in Angola more credible, said State Minister for Economic and Social Development Manuel Nunes Júnior.

Speaking  to Jornal de Angola, in its Monday edition (07), the minister said that with the IMF-approved Expanded Financing Program, on August 7, 2018, it is possible to increase foreign investment in the country, as well as how to accelerate the implementation of Angolan economic and social improvements.

Assessing the visit to Angola by IMF Director-General Christine Lagarde, held as from  20- 21 December, he said that the Program marks the beginning of a phase in which the Government’s actions “will be under high level of international monitoring”.

“It’s one thing to do the reforms alone … another is to say: we are reforming and we want to be totally transparent in this process and to cooperate with the most important financial institution in the world,” he said.

According to the minister, the IMF’s funds will help Angola implementing the Macroeconomic Stabilization Program (PEM), including the process of fiscal adjustment, allowing the process of revitalization of the productive sector to begin.

Regarding the scope of this agreement, the government official ruled out any imposition, clarifying that Angola “will continue with its program of economic reforms” associated with the IMF.

In addition to financial aid, the minister highlighted IMF technical support, which brings together the best staff in the world on issues related to macroeconomic management.

In his view, Angola should take advantage of the exchange of cadres, giving young technicians the opportunity to interact with IMF specialists, who have a high technical-scientific capacity.

The credit will only begin to be paid a year and a half after the plan is completed. Interest rates, though viable, will never exceed three per cent.

This agreement will strengthen the Government’s ability to solve all social problems, ensure the success of the program of diversification of the economy, increase exports, non-oil foreign exchange earnings volume and job supply, according to the President of the Republic, João Lourenço, in his last collective interview, granted on December 21.

Source: Angop

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