Angola Seeks to Increase Its IMF Program by 22% to $4.5 Billion

(Bloomberg) -- Angola, Africa’s second-biggest oil producer, wants to increase its loan with the International Monetary Fund to $4.5 billion to overcome a crisis triggered by lower crude prices and the coronavirus outbreak.

The additional $800 million could be approved in the next review of Angola’s $3.7 billion loan program that’s expected to be completed at the end of July, or in the following review, State Secretary for Finance and Treasury Osvaldo Joao said Monday in a webcast.

“If the board of the IMF approved the additional tranche we would be very happy and it would help manage our finances in the times ahead,” said Joao. “We believe we will be successful.”

In 2018, the IMF had a total of $4.5 billion available for Angola when it approved a three-year extended arrangement. At the time the southern African nation was advised, including by the IMF, to seek a lower amount so that it could increase the value of its program in case it was necessary, according to Joao.

Angola, which depends on oil for more than 90% of its export revenue, is facing a prolonged recession triggered by a drop in crude prices and measures to contain the coronavirus outbreak. The government is also currently in talks with key creditors to reschedule debt payments.

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