{
  "title": "IMF Executive Board Completes the Second Review Under Angola’s Extended Arrangement and Approves US$247 Million Disbursement",
  "publication": "IMF News, December 5, 2019",
  "sourceUrl": "https://www.imf.org/en/news/articles/2019/12/05/pr19443-angola-imf-completes-the-second-review-under-angola-extended-arrangement",
  "canonical": "https://www.imf.org/en/news/articles/2019/12/05/pr19443-angola-imf-completes-the-second-review-under-angola-extended-arrangement",
  "overlayPath": "/en/news/articles/2019/12/05/pr19443-angola-imf-completes-the-second-review-under-angola-extended-arrangement/index.md",
  "summary": "On December 5, 2019, the Executive Board completed the Second Review of Angola’s economic program under an extended arrangement under the Extended Fund Facility (EFF).",
  "publishDate": "2019-12-05",
  "sections": [
    {
      "heading": "Review outcome and disbursement",
      "content": "- On December 5, 2019, the Executive Board completed the Second Review of Angola’s economic program under an extended arrangement under the Extended Fund Facility (EFF).\n- Completion of the review unlocks access to SDR 179 million (about US$247 million).\n- Total disbursements under the extended arrangement are SDR 1.073 billion (about US$1.48 billion)."
    },
    {
      "heading": "Program adjustments, waivers, and targets",
      "content": "- The Executive Board approved:\n  - waivers of nonobservance and modification of the performance criteria (PC) on net international reserves and non-accumulation of external debt arrears;\n  - introduction of a new PC on reserve money (ceiling);\n  - modifications to three indicative targets: increasing the ceilings on the accumulation of payments arrears and on public debt; and a new indicative ceiling on the issuance of debt guarantees by the Central Government;\n  - changes in the timetable of six structural benchmarks (SBs);\n  - five new SBs to underpin fiscal consolidation and transparency, and support financial sector restructuring."
    },
    {
      "heading": "Program background and objectives",
      "content": "- Angola’s three-year extended arrangement was approved by the IMF Executive Board on December 7, 2018, in the amount of SDR 2.673 billion (about US$3.7 billion at the time of approval), the equivalent of 361 percent of Angola’s quota.\n- Program aims:\n  - restore external and fiscal sustainability;\n  - improve governance;\n  - diversify the economy to promote sustainable, private sector-led economic growth."
    },
    {
      "heading": "Key findings and assessments (Statement by Mr. Tao Zhang, Deputy Managing Director and Acting Chair)",
      "content": "- The Angolan authorities have maintained their commitment to the Fund-supported program despite a challenging external and domestic environment.\n- The authorities’ commitment to fiscal consolidation was illustrated by the outperformance of the end-June 2019 non-oil primary fiscal deficit target by a wide margin.\n- Angola continues to face a deteriorated external environment, which is weighing on the economic outlook."
    },
    {
      "heading": "Policy recommendations and required actions (from Mr. Tao Zhang)",
      "content": "- Fiscal policy and debt:\n  - Sustain fiscal discipline to address debt vulnerabilities.\n  - Continue the conservative fiscal stance expected to continue in 2020.\n  - Persevere with measures to mobilize non-oil revenue, strengthen public financial management, improve debt management, and bolster transparency and accountability of state-owned enterprises to preserve medium-term gains and mitigate elevated risks to debt sustainability.\n- Monetary and exchange rate policy:\n  - The National Bank of Angola (BNA) took steps to eliminate remaining imbalances in the foreign exchange market and reduced constraints to market-price formation in foreign exchange auctions.\n  - The monetary stance has been recalibrated to address excessive depreciation pressures on the kwanza.\n  - The BNA should maintain its tight monetary policy stance, and stand ready to tighten further if warranted, in order to support the disinflation process.\n- Financial sector:\n  - Full and timely implementation of banking sector recapitalization and restructuring is essential to address financial sector risks.\n  - Asset quality reviews of 13 banks will inform possible recapitalization needs of private banks and of public banks, consistent with available fiscal space.\n  - Further amendments are warranted to the BNA and Financial Institutions Laws to enable the authorities to strengthen bank supervision and resolution.\n- Structural reforms:\n  - Continued implementation of structural reforms is critical to diversifying the economy and laying the foundations for sustainable, private sector-led economic growth.\n  - The Government remains committed to improving the investment environment, strengthening governance, and fighting corruption, including by enhancing AML/CFT legislation.\n\nSource: IMF Press Release No. 19/443 — “IMF Executive Board Completes the Second Review Under Angola’s Extended Arrangement and Approves US$247 Million Disbursement”, December 5, 2019.\n\n---\n\n\n References\n\n- Tao Zhang\n- Angola and the IMF\n- Special Drawing Rights (SDRs) -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- No. 18/463\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2019/12/05/pr19443-angola-imf-completes-the-second-review-under-angola-extended-arrangement"
    }
  ],
  "bullets": [
    "[Markdown version](/en/news/articles/2019/12/05/pr19443-angola-imf-completes-the-second-review-under-angola-extended-arrangement/index.md)",
    "[Structured JSON version](/en/news/articles/2019/12/05/pr19443-angola-imf-completes-the-second-review-under-angola-extended-arrangement/index.json)",
    "[Bundle manifest](/en/news/articles/2019/12/05/pr19443-angola-imf-completes-the-second-review-under-angola-extended-arrangement/bundle-manifest.json)",
    "Published: December 5, 2019",
    "On December 5, 2019, the Executive Board completed the Second Review of Angola’s economic program under an extended arrangement under the Extended Fund Facility (EFF).",
    "Completion of the review unlocks access to SDR 179 million (about US$247 million).",
    "Total disbursements under the extended arrangement are SDR 1.073 billion (about US$1.48 billion).",
    "The Executive Board approved:",
    "Angola’s three-year extended arrangement was approved by the IMF Executive Board on December 7, 2018, in the amount of SDR 2.673 billion (about US$3.7 billion at the time of approval), the equivalent of 361 percent of Angola’s quota.",
    "Program aims:",
    "The Angolan authorities have maintained their commitment to the Fund-supported program despite a challenging external and domestic environment.",
    "The authorities’ commitment to fiscal consolidation was illustrated by the outperformance of the end-June 2019 non-oil primary fiscal deficit target by a wide margin.",
    "Angola continues to face a deteriorated external environment, which is weighing on the economic outlook.",
    "Fiscal policy and debt:",
    "Monetary and exchange rate policy:",
    "Financial sector:",
    "Structural reforms:",
    "[Tao Zhang](https://www.imf.org/en/About/senior-officials/Bios/tao-zhang)",
    "[Angola and the IMF](http://www.imf.org/external/country/AGO/index.htm)",
    "[Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[No. 18/463](https://www.imf.org/en/News/Articles/2018/12/07/pr18463imf-executive-board-approves-extended-arrangement-under-the-extended-fund-facility-for-angola)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
  ],
  "alternates": {
    "markdown": "/en/news/articles/2019/12/05/pr19443-angola-imf-completes-the-second-review-under-angola-extended-arrangement/index.md",
    "json": "/en/news/articles/2019/12/05/pr19443-angola-imf-completes-the-second-review-under-angola-extended-arrangement/index.json",
    "bundleManifest": "/en/news/articles/2019/12/05/pr19443-angola-imf-completes-the-second-review-under-angola-extended-arrangement/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-25T23:16:58.791Z"
}