(Ecofin Agency) - The International Monetary Fund (IMF) approved a $3.7 billion extended credit facility for Angola, a release published by the institution informed last week.

The new agreement, which spans over three years, is aimed at helping the government lay the foundations of a diversified economy with a growth mainly spurred by investments in the private sector.

The reduction of the country’s debt, inflation, improvement of the competitivity via an increase of the flexibility of exchange rates as well as a consolidation of the banking system are the main points that will be considered by the new financing programme.

"Structural reforms under the program will aim to diversify the economy to reduce fiscal risks and foster private sector development. They will include restructuring state-owned enterprises and improving the business climate, strengthening economic governance, and continuing to fight corruption", said Tao Zhang, deputy managing director of the IMF.

This announcement is made two months after Luanda informed that it initiated discussions with the IMF to benefit from a $4.5 billion funding programme that should help fund its 2018-2022 macroeconomic stabilization.

Let’s note that the new agreement results in the immediate disbursement of $990.7 million as the first tranche of this funding program.

Moutiou Adjibi Nourou