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