Angola’s Minister of Finance announced on Tuesday that the country would not negotiate a new credit package with the IMF.
Angola’s Ministry of Finance announced on Tuesday that it was not in negotiations with the International Monetary Fund regarding a new financial aid program. This announcement led to a decline in the country’s sovereign bonds.
The South African oil exporter said it had asked the IMF to “update a note on response options to risk scenarios.”
In a statement from the Ministry of Finance, it was stated, “Currently, there are no discussions with the Fund regarding a potential financial aid program.”
An IMF spokesperson mentioned that no program request had been received, but that there had been “very close contact” with Angolan authorities on policy advice and technical assistance.
Budget Deficit
The Angolan government is forecasting a budget deficit of 1.65% of GDP in 2025, slightly higher than this year.
Finance Minister Vera Daves de Sousa had said in October during an interview with Reuters that the potential for falling oil prices was putting pressure on the country, and Angola was considering reviewing the possibility of requesting a financing program from the IMF.
At 3:00 PM GMT, the price of Brent crude oil had slightly risen to $73.44 per barrel, while Angola’s dollar bonds fell by 1.3 cents, with 2048 bonds trading at 82.41 cents on the dollar.
