WASHINGTON, D.C. – OPEC member Angola has turned to the International Monetary Fund (IMF) for economic support, the organization has confirmed. With Angola’s economy dependent on its oil and gas industry, the country has been hit hard following the collapse of the crude price.
Reuters recently reported that Angola had been trading oil to China in exchange for its investment. As it became necessary to provide more oil to relieve its growing debt to the continent, it had less of a supply to sell.
Min Zhu, deputy managing director of the IMF, confirmed: “We have received a formal request from the Angolan authorities to initiate discussions on an economic program that could be supported by financial assistance from the IMF.
“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 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.
“We expect to start discussions with the country’s authorities during the upcoming spring meetings in Washington, D.C. and in Angola shortly thereafter on an economic program that could be supported by a three-year extended fund facility.”
Angolan Finance Minister Armando Manuel said that the IMF’s support was not financial assistance but a cooperation focused on technical assistance for economic diversification and other policy measures to stimulate Angola’s economic growth.
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