Angola: First Review of the Extended Arrangement Under the Extended Fund Facility, Requests for a Waiver of Nonobservance of a Performance Criterion, and Modifications of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Angola

IMF Staff Country Reports, June 19, 2019

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Canonical URL: Angola: First Review of the Extended Arrangement Under the Extended Fund Facility, Requests for a Waiver of Nonobservance of a Performance Criterion, and Modifications of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Angola

A 36-month Extended Arrangement under the Extended Fund Facility (hereafter the “arrangement”) was approved last December, with access of SDR 2,673 million (361 percent of quota).
Lower international oil prices would reduce oil revenues, widen the current account deficit, and stymie growth recovery.
The authorities are implementing a policy response to the weakened outlook through:
- a conservative supplementary budget for 2019,
- alternative sources of cheaper financing,
- progress toward a more flexible exchange rate regime.

Principal downside risk highlighted: lower international oil prices.
Expected economic effects of lower oil prices:
- reduced oil revenues,
- widened current account deficit,
- stymied growth recovery.

Authorities’ measures to address weakened outlook:
- adoption of a conservative supplementary budget for 2019,
- securing alternative sources of cheaper financing,
- advancing toward a more flexible exchange rate regime.
The document includes requests related to:
- a waiver of nonobservance of a performance criterion,
- modifications of performance criteria,
- a financing assurances review.