IMF to disburse $1bn to Angola to address COVID-19 crisis

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IMF to disburse $1bn to Angola to address COVID-19 crisis

The International Monetary Fund (IMF) on Wednesday said it would disburse a billion dollars to Angola to address the impact of the coronavirus pandemic.

The IMF executive board made the decision after completing a third review of Angola’s three-year economic programme under its Extended Fund Facility approved at the end of 2018, bringing the total
disbursements under the arrangement to some 2.5 billion dollars.

“Angola’s economy has been hit hard by a triple, COVID-19-induced
external shock.IMF to disburse $1bn to Angola to address COVID-19 crisis

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The shock led to economic and health crises, compounded by the decline
in oil prices in view of Angola’s dependence on oil exports,” the
IMF said in a statement.

The fund went on to list some “decisive measures” adopted by
authorities to tackle the impact of the crisis.

The board’s deputy managing director and acting chair, Antoinette
Sayeh, said that “pursuing structural reforms is critical to diversify
the economy and lay the foundations for private sector-led economic
growth.

“The government will need to remain steadfast in enhancing the
business environment, strengthening governance, and fighting
corruption.”

In late June, the IMF said that economies in sub-Saharan Africa were
projected to contract by 3.2 per cent due to the pandemic, with growth
expected to recover to 3.4 per cent in 2021, assuming that the health
crisis abates and lockdowns ease further in the second half of 2020.

In the region’s largest economies – Angola, Nigeria and South Africa
– gross domestic product was projected to return to pre-crisis levels
only by 2023 or 2024

IMF to disburse $1bn to Angola to address COVID-19 crisis