Angola’s public debt is “very high,” the head of an International Monetary Fund (IMF) mission said in Luanda and could reach 90% of Gross Domestic Product (GDP) by the end of the year.
Mário Zamaroczy, who heads the IMF delegation on a visit to Angola that began on 22 March to assess the implementation of the financial aid programme, recalled that Angolan public debt currently exceeds 71% of GDP, with an estimated value of US$78 .5 billion.
The official, who made the remarks at the end of a meeting with the 5th National Assembly’s Economy and Finance Committee, recalled that Angola and the IMF have a financing programme valued at US$3.7 billion, approved by the Board of Directors on 7 December 2018, hence the need for periodic evaluation.
At the moment, the Fund is carrying out the first evaluation of the fulfillment of the goals that the Angolan government has committed to reaching, as well as measures and decisions are taken with a view to their practical application, said Zamaroczy cited by Angolan state news agency Angop.
On the basis of the preliminary information received by the delegation, the IMF official is of the opinion that the programme is being well implemented by the authorities, and all indications are that they will recommend the disbursement of the second tranche of the aid, as the first tranche of US$1 billion has already been made available.
The head of the IMF’s mission stressed that the Angolan authorities are working to reduce public debt and have taken a more cautious approach to contract additional debt both domestically and abroad.
“The capacity to guarantee debt servicing is limited, so the government has to take steps not to incur new debts,” said Zamaroczy.