The Executive Board of the International Monetary Fund has approved a three year programme for Angola worth $3.7 billion.
The Extended Fund Facility is to help support the country’s economic growth.
The funds is also expected to be channeled into improving governance, reducing risks associated with state owned enterprises, addressing structural obstacles to improving access to finance.
It will also help Angola restore external and fiscal sustainability and lay the foundations for sustainable, private-sector-led economic diversification.
Critical pillars of the program include fiscal consolidation to bring debt to safer levels; increased exchange rate flexibility to regain competitiveness; and supportive monetary policy to reduce inflation.
Angola is currently implementing a National Development Plan for 2018–22 to address structural bottlenecks and promote human development, public sector reform, diversification and inclusive growth.
The first tranche of $990 million has been sanctioned already and should hit the account of Angola in the next few days.
The remaining amount will be phased in over the duration of the program, subject to semi-annual reviews.
Source: Africafeeds.com
