The International Monetary Fund (IMF) on Wednesday approved Angola’s request for increased financial assistance and immediately disbursed US$1B.
This measure brings the total assistance programme to almost US$4.5B, a statement from the international financial body noted.
According to the fund, this third positive assessment of financial assistance is given under the Extended Fund Facility.
It allows for the disbursement of an additional US$1B, or about US$2.5B since the agreement was signed on 7 December 2018.
The agreement aims to “restore external and fiscal sustainability, improve governance and diversify the economy to promote sustainable economic growth, led by the private sector,” explains the IMF.
“The board’s decision allows an immediate disbursement of US$1B (€847M) to Angola and an increase of around US$765M (€648M) until the end of the programme,” to almost US$4.5B, it noted.
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The IMF also states that “the Angolan economy has been hit hard by a multifaceted shock originating in the Covid-19 pandemic and the decline in oil prices.
It welcomes the timely measures taken by the country’s authorities to address the challenges, underlining that “they remain firmly committed to the programme.
According to the IMF, this programme “has been implemented in a generally satisfactory way,” by the Angolan authorities.
At the conclusion of the third evaluation, the Fund also assessed the authorities’ request to increase the loan by US$765M, which brings the total to US$4.4B.
The request aims to support the authorities’ efforts to control the spread of the Covid-19 pandemic, mitigate its economic impact and make progress in implementing structural reforms.
This Wednesday’s meeting in Washington also served to analyse some technical requests from the Angolan authorities, in relation to targets and performance criteria that determine whether or not more funds will be disbursed during the duration of the financial assistance programme, but the changes have not yet been made public.
“The Angolan authorities remain committed to sound policies under the IMF-supported programme, despite the deteriorating external environment due to the Covid-19 pandemic,” the IMF said.