- May 24, 2016
- Posted by: ABO Capital
- Category: Publications by Zandre Campos
As you read this in the spring of 2016, the International Monetary Fund and the government of Angola are engaged in talks for a three-year extended loan program. The IMF financing, known as the Extended Fund Facility program, could be as high as $1.5 billion annually with a cumulative total of about $4.5 billion.
Many news stories have called the IMF funding a “bailout” to cushion the impact of the steep drop in oil prices on the Angolan economy. Angola, which produces some 1.6 million barrels a day, is Africa’s second-largest oil producer. But to focus strictly on the negative scenario presented by the need for IMF assistance is merely short-sighted. The IMF financing will open up Angola to a whole host of new opportunities.