Financial IMF support to Angola to reduce debt / tax revenue ratio – observer

The Angolan government said in Luanda that the plan to use the International Monetary Fund's (IMF) financial assistance program, if approved, will significantly reduce the debt / income ratio of the country, currently at 114%.

The declaration was given Saturday by the Angolan Minister of Economy and Planning, Pedro da Fonseca, at the presentation of the National Development Plan (PDN) to members, militants and sympathizers of the People's Movement for the Liberation of Angola (MPLA in power). the non-oil sector could represent 77.2% of the gross domestic product (GDP) in 2022.

Pedro da Fonseca argued that tax revenues that should only be collected in 2018 are not sufficient to repay the debt that occurs during this period.

The Angolan official indicated that in order to pay what he owes in 2018, the country has a ratio of about 114%, a percentage that does not cover public debts.

Taking this framework into account, he explained, the government of Angola has used the IMF financial assistance program, which will discuss a comprehensive financing of US $ 4.5 billion (€ 3.9 billion).

According to Pedro da Fonseca, as soon as an agreement has been reached, Angola will, within the framework of the series of policy lines drawn up in the NDP, reduce the indicator for the ratio between debt service / tax revenues to 68.8% by 2019, oscillating in the in the years between 77.1% (2020), 56.7% (2021) and 68.2% (2022)) and reached a sustainable level and well below that of 2018.

"If we go on the same road, we would make economic growth unattainable," he said.

In the presentation, the minister spoke about sustainable and inclusive economic development, the second axis of the NDP, which provides, among other things, the promotion of production, import replacement and export diversification.

Without comparative data, the projected targets until 2022 point, among other things, to non-oil production with a representation of 77.9% of GDP, an increase of 50% of the annual value of exports of annual production of ornamental stones by about 62%.

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