Angola, IMF want debt below 90 percent of GDP

news-image

Luanda — Angolan Secretary of State for Budget Aia-Eza da Silva said on Friday that the Angolan government and the International Monetary Fund (IMF) want public debt below 90 percent of gross domestic product (BIP).

In its Saturday edition, the state-run News Paper "Jornal de Angola" quotes the statements of Secretary of State to the financial information agency, Bloomberg, made on the sidelines of the World Economic Forum on Africa, held in Cape Town.

The source quotes the official as having expressed hope that the IMF would approve the disbursement of the second tranche of the US$ 3.7 billion Expanded and Converged Financing Programme to halt the rise in Angolan public debt.

"The IMF is concerned about public debt, which is about 90 percent of GDP and made it clear that this ratio should not be increased," Aia-Eza da Silva said in the interview.

The Secretary of State said the fact that Angola had benefitted from a total of US$1.24 billion in less than a year was a great achievement because it was a lot of work.

"We are trying our best on the economic side and this is the main way to evaluate us. Therefore, we hope that the next tranche of the loan can also be disbursed, "added the Secretary of State.

The public debt has increased significantly in recent years due to the fall in oil revenues in foreign currency, which has led to a kwanza depreciation and a rise in inflation.

In June, the IMF estimated that Angola's public debt had stood at 91 percent against GDP in 2018, and that this figure was sustainable as long as there were no major shocks in the economy.

"Despite a planned increase for 2019, Angola's debt is considered sustainable, but with little room for maneuver for major shocks," the IMF detailed analysis shows in the first review of the assistance programme that Angola agreed at the end of the year and which was released at the end of June.

The IMF assumes that debt-to-GDP ratios and debt-to-income ratios "will remain high throughout the programme," warning that this "leaves little room to accommodate large shocks or debt that go beyond the program's projections ".

 

LEAVE A COMMENT

Comments

image

Poachers have broken into Botswana’s p Read more...

10 Aug, 2018 at 01:58 PM

image

In a sign that Botswana is likely to cli Read more...

02 Jul, 2018 at 09:26 AM

image

DAR ES SALAAM - DIRECTIVES on online for Read more...

02 Jul, 2018 at 01:24 PM

image

Gaborone - Poachers have broken into Bot Read more...

04 Feb, 2019 at 07:35 AM

image

SADC leaders meeting in Tanzania this we Read more...

19 Aug, 2019 at 01:51 PM

image

Maputo – Only seven of the 20,162 poll Read more...

16 Oct, 2019 at 10:23 AM

image

Pomp and trumpet blast characterised the Read more...

16 Oct, 2019 at 10:20 AM

image

Gaborone - A group of prominent former A Read more...

11 Oct, 2019 at 12:27 PM

image

The creation of a single liberalised mar Read more...

11 Oct, 2019 at 12:26 PM

image

Windhoek - Hot on the heels of the gradu Read more...

11 Oct, 2019 at 12:25 PM

image

Lusaka - Amid myriad criticisms from soc Read more...

14 Dec, 2018 at 06:28 AM

image

Windhoek - Tanzania has been outperformi Read more...

24 Sep, 2018 at 09:29 AM

image

Johannesburg - The year ahead will be ke Read more...

28 Jan, 2019 at 09:44 AM

image

Heads of state and ministers who travell Read more...

30 Jul, 2018 at 02:01 PM

image

Windhoek - The European Union National I Read more...

01 Apr, 2019 at 12:33 PM