Luanda – The representative of the International Monetary Fund to Angola, Marcos Souto, reiterated this Tuesda, the need to save the extraordinary revenues generated by the rise in the price of a barrel of oil in the international market.
The price of a barrel reached around 70 US Dollars.
The senior staff of this Bretton Woods institution states that savings should be made to recompose the liquidity reserve, with a view to treasury management and to reduce public indebtedness levels.
Marcos Souto, who spoke about "Angola: Transition to Gradual Reduction", was one of the speakers at the webinar on "disassemble the State Budget", an initiative of the Ministry of Finance with the support of UNICEF.
The 2021 State Budget is based on the price of US $39 per barrel of oil and a production level of 1.2 million barrels per day, with revenues in the order of 4.06 billion kwanzas (Equivalent US $6.3 million). Data indicate that half of this amount has already been collected in the first three months of this year.
Researches carried out indicate that with just a barrel at a price of 60 USD, oil revenue for this year would be estimated at 6.71 billion kwanzas (equivalent US $10.4 million).
Regarding the sector, he says that though there was a recovery in prices, the decline in production continues, a risk factor that should be observed.
Debt remains sustainable
Regarding the public debt, Marcos Souto says that it remains sustainable, but calls for the maintenance of budgetary discipline and the application of structural reforms that promote growth.
Marcos Souto considers that it (public debt) remains subject to high risks, associated with its strong dependence on oil activity.
The recent report on the Angolan Public Debt, released by the consultancy Fitch Solutions, reveals the beginning of the downward trajectory in full, leaving the previous more than 120% estimated in 2020 and the 106% for 2021.
For 2022, the consultant predicts that it can settle around 97%.
