IMF says board approves $772 million disbursement to Angola

JOHANNESBURG (Reuters) - The International Monetary Fund's executive board has approved a disbursement to Angola of about $772 million after completing a fifth review of the African oil exporter's loan program.

In a statement late on Wednesday, the Fund said even though the effects of the COVID-19 pandemic was still being felt in the Angolan economy, authorities have supported the recovery through sound policies.

"The authorities are continuing to strengthen public finances and debt dynamics. They achieved a strong fiscal adjustment in 2020 and are on track to do the same in 2021," IMF Deputy Managing Director Antoinette Sayeh said in a statement.

"By saving the bulk of oil revenue windfall this year, they are helping to sustain the planned rapid reduction in public debt vulnerabilities. Their decision to request an extension of debt service relief under the Debt Service Suspension Initiative (DSSI) through end-December 2021 is welcome."

The IMF said the new disbursement, under the Extended Fund Facility program that was initially approved in December 2018,

brings total disbursements under the arrangement to about $3.9 billion.

"Strong non-oil growth recovery is critical for sustainability. The authorities need to maintain momentum on structural reforms that support stronger diversified growth, enhance governance, and combat corruption," added Sayeh.

(Reporting by Olivia Kumwenda-Mtambo; Editing by Muralikumar Anantharaman)