Angola seeks IMF bail out

Angola has requested a bailout from the International Monetary Fund that could be worth more than $1.5bn, making the OPEC member the latest oil-producing country to seek international help to cope with the fallout from low crude prices.

The IMF said on Wednesday that it had received a request for a three-year programme from Angola and would be discussing the terms of its assistance during next week’s spring meetings of the IMF and World Bank in Washington. Under the fund’s rules the west African nation is eligible for a little over $500m in assistance annually unless it receives special waivers.

The move marks the second time in seven years that Angola, which produces some 1.6m barrels per day of oil and is second only to Nigeria as an African producer, has turned to the IMF for help. In 2009 it secured a $1.4bn emergency loan from the fund which it is still in the process of repaying.

It also reflects the growing stresses being felt by oil producers across the developing world that have been hit hard by a collapse in crude prices and are now struggling to plug the gaps left by dwindling oil revenues.

Countries ranging from Azerbaijan to Nigeria have in recent months been engaging in discussions with the IMF, World Bank and other multilateral institutions over how to plug growing holes in their budget and stave off crises.

“The sharp decline in oil prices since mid-2014 represents a major challenge for oil exporters, especially for those economies that have yet to become more diversified,” Min Zhu, the IMF’s deputy managing director, said in a statement announcing Angola’s request. “The IMF stands ready to help Angola address the economic challenges it is currently facing.”