IMF approves release of $1 billion to Angola for COVID-19 economic aid

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The International Monetary Fund (IMF) building sign is viewed on April 5, 2016 in Washington, DC. This years Spring Meetings events will take place in Washington, DC, April 12-17, 2016. Thousands of government officials, journalists, civil society organizations, and participants from the academia and private sectors, gather in Washington DC for the Spring Meetings of the International Monetary Fund and the World Bank Group. / AFP / Karen BLEIER (Photo credit should read KAREN BLEIER/AFP/Getty Images)

The IMF approved the release of another $1 billion in lending for Angola as its economy struggles with the Covid-19 downturn and global drop in crude prices.

It also added $765 million to a three-year aid program for the southern African nation to help it deal with the pandemic’s impact on the economy.

The latest disbursement brings to $2.5 billion the total released.

Angola has been hard hit by slumping oil prices since the coronavirus pandemic hit, caused by a global slowdown in demand and a price war between major crude producers.

Ms. Antoinette Sayeh, Deputy Managing Director and IMF Acting Chair, said the Angolan authorities remain committed to sound policies under the IMF-supported program despite a deteriorated external environment due to the COVID-19 pandemic, including negative impacts on public health, social protection, the budget, and public debt.

According to Moody’s ratings agency, Angola, Africa’s second largest oil exporter has seen its debt-to-GDP ratio blow out to 120% with more than 90% of its debt denominated in hard currency, mostly U.S. dollars.

 

Story compiled with assistance from AFP and wire reports

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