Angola said Wednesday it had
asked the International Monetary
Fund for help after the crash in oil
prices ravaged government
finances. The IMF said discussions would
begin next week in Washington on
what could be a three-year support
plan for the government. "The sharp decline in oil prices since
mid-2014 represents a major
challenge for oil exporters,
especially for those economies that
have yet to become more
diversified," the Fund said in a statement. "The IMF stands ready to help
Angola address the economic
challenges it is currently facing by
supporting a comprehensive policy
package to accelerate the
diversification of the economy, while safeguarding macroeconomic
and financial stability." Angola has depended on oil
production for 95 percent of its
export earnings and more than half
of government receipts. In a statement, the government said
it "is aware that the high reliance on
the oil sector represents a
vulnerability to the public finances
and the economy more broadly." Angola "will work with the IMF to
design and implement policies and
structural reforms aimed at
improving macroeconomic and
financial stability, including through
fiscal discipline," the statement read. IMF three-year Extended Fund
Facility programs usually offer
financial support for government
finances while requiring disciplined
reforms, which often include
spending cuts and stronger tax collection efforts. Angola had a previous three-year
support program from the IMF, a
$1.4 billion Stand-By Arrangement
during 2009-2012. This helped the
country resolve domestic debts,
stabilize its exchange rate, and shore up its international reserves. Under the proposed new program,
the government said it "is
committed to improving
transparency in the public finances
and the banking sector." "There is a strong belief within the
government that the continued
drive towards enhanced
transparency can be accelerated by
partnering with an institution like
the IMF."
www.vanguardngr.com/2016/04/angola-hit-collapse-oil-prices-seeks-imf-aid/

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