Washington - Angola's participation in the annual meetings of the World Bank (WB) and International Monetary Fund (IMF), which ended Saturday (26), in Washington, United States of America, resulted in the approval of a loan worth approximately USD 500 million for the country.
Speaking to the press, the minister of Planning and head of the Angolan delegation at the event, Victor Guilherme, revealed that the money will be used to finance the actions of the General State Budget (OGE) 2024 and 2025.
The official considered that the loan, whose values will be available within a month, constitutes one of the gains from Angola's presence in the events held from the 21st to the 26th of the current month, which brought together business leaders and international experts.
Victor Guilherme, who is also governor of Angola at the World Bank, assured that the conditions of this credit are advantageous, with a low interest rate and a 30-year period for repayment.
“The loans that the country obtains in relation to multilateral institutions, such as the World Bank (WB) and the International Monetary Fund (IMF), are associated with very low interest rates, compared to credit made to commercial banks, for example”, he assured.
He mentioned that the financing agreement has already been signed by the financial institution, during the meetings, a process that will also be carried out by the Angolan Minister of Finance, in the coming days. Therefore, he stated that all OGE 2024 and 2025 expenses are eligible for this financing.
The official informed that, under this agreement, the government is negotiating with the WB another loan to support “Coastal Cities”, within the scope of a project called “What should be done”.
According to him, the meetings of the Bretton Woods institutions also allowed ttto review Angola's financing portfolio, by increasing financial capital to support private companies, without putting the Angolan State further into debt.
He justified that Angola requests more financing aimed at private sector projects, because the local bank still “does not have sufficient funds to meet the demand for financial capital in the national market”.
The minister added that this fact requires the support of the World Bank (WB) to reinforce the treasury of private companies that operate in various areas of the country's social and economic activity.
Among the priority sectors, he said that the government highlights the food security segment, which integrates food production, distribution and marketing, support for women and young people, in addition to training human capital, themes that are aligned with the Plan of National Development (PDN) 2023-2027.
Victor Guilherme explained that during meetings with partners, the Angolan delegation understood that bilateral and multilateral institutions are aligned with Angola's priorities, a fact that allows them to work more cohesively with financiers.
To him, the country's presence at WB and IMF meetings is necessary, as it serves Angola to present its position on the path that the two institutions should take for the well-being of all member states, in addition to to serve as a platform to attract financing and private investments.
Among other gains, the reduction in financial costs associated with the debt that Angola contracted with the IMF stands out, as part of the review of rates presented by the member countries of this financial institution.
In turn, the minister of Finance, Vera Daves de Sousa, highlighted that the reduction in these rates is justified by the fact that it burdens the treasury of debtor countries.
She said that members of both institutions also defend the reformulation of the loan granting process, to make access to credit easier, especially for developing states.
Among other activities, minister Vera Daves was a speaker in the exclusive debate on the Global Economy.
In addition to Victor Guilherme and Vera Daves, the Angolan delegation included the governor of the Central Bank of Angola (BNA), Manuel Tiago Dias, the CEO of The Sovereign Fund, Armando Manuel, as well as other individuals.
The annual events of the World Bank Group (WBG) and the IMF are a set of events that bring together influential leaders from governments, companies, international organizations, civil society and academia, in search of solutions to the economic development and sustainability challenges the world is facing.
Despite having occurred within the expectations of the participants, who obtained excellent results, the opening and closing of the event were marked by the concentration of protesters in front of the IMF and WB institutions, calling for a reformulation of the current form of financing and the end of the conflict between Israel and Palestine.
This year, the event took place as the general elections in the United States of America approached, which is scheduled to take place on November 5th, with Donald Trump and Kamala Harris as candidates.
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