FRANKFURT — The International Monetary Fund has approved a $1.4 billion loan arrangement with Angola to help the African country restore macroeconomic balances and rebuild international reserves. The 27-month program provides space for 30% of total central government expenditures on social issues, the IMF said. “Angola has suffered a significant terms-of-trade shock because of the sharp drop in oil prices,” the IMF said in a statement late Monday. “The subsequent large drop in oil revenues caused a sharp slowdown in the economy, weakening of fiscal and external positions, depreciation of the exchange rate, and a rise in inflation.” The IMF welcomed Angola’s plan to establish a sovereign wealth fund. It also said that the resumption of foreign exchange auctions by the National Bank of Angola has contributed to normalizing conditions in the foreign exchange market. Angola’s real GDP is projected to be broadly flat in 2009, reflecting a big drop in oil production and a sharp slowdown in the pace of non-oil growth, the IMF said.
IMF Approves $1.4 Billion Loan For Angola
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