Angola says you no longer need IMF financial support – publico

 
         

                 

                         
                     

                         

                 

 
 

After 2015 was marked by low oil prices, this year started with the barrel to be worth $ 37. Shortly thereafter, in early April, the price was at $ 39, and Angola asked for help to the IMF by Extended Fund Facility (EFF), a mechanism that, according to the IMF itself, presupposes a “more prolonged engagement” what had happened in 2009, and with more money involved.

Now, José Eduardo dos Santos told the IMF that the country could do without the financial support (maintaining contacts at the technical level, while IMF member) . The barrel is now between 49 and 50 dollars, and this may have made the difference. “The President of the Republic [of Angola] informed the IMF about the decision to maintain dialogue with the background only in the context of Article IV (consultations) and not in the context of discussion of the aid program EFF [Financing Program Expanded]” said IMF spokesman at a press conference at the Fund’s headquarters in Washington, Gerry Rice confirmed that “there was a change” and that “discussions concerning a possible assistance program no longer fall within the scope of the technical.”

technical support is still on the table, but without the EFF, the IMF views the lose power if the executive Eduardo dos Santos do not want to apply. On the other hand, Angola, which had marked a stark form the image of a “bailout”, can return to the application for support, if deemed necessary.

Having the oil its main source of revenue, the fall in prices has pushed the country’s accounts, in particular by lack of foreign exchange to pay for imported goods. In turn, the crisis, which put a brake on public spending, and private, has penalized exporters and Portuguese investors (as well as those who work there).

Faced with the need to correct various weaknesses the country, such as extreme poverty and the lack of diversification in the economy, Angola is facing several challenges, with or without IMF money. And the very bottom who identified many of them within the official visit he made to the country in the first weeks of June.

At the time, through a statement, the IMF said that “the Angolan economy remains severely affected by the shock of oil prices the past two years. ” Economic growth “slowed to 3% in 2015, which was determined by the sharp slowdown in non-oil sector. Annual inflation accelerated and reached 29.2% in May 2016, reflecting a weaker kwanza, which has depreciated by over 40% against the US dollar since September 2014, “the Fund.

this year, the IMF said that the outlook “remains challenging, despite the increase in oil prices in recent weeks, and that economic activity is likely to slow further,” although point to the expectation of “a recovery modest in 2017 “if factors such as shortage of foreign exchange are improved. Noting that there have been positive steps, the Fund pointed out that are needed “further measures to reduce vulnerabilities,” and that is important “to maintain fiscal prudence with the approach of the 2017 elections.” With Lusa