Angola is projected to save approximately $48.5 million in payments to the IMF (International Monetary Fund) in the upcoming fiscal year, thanks to the implementation of the Fund’s revised surcharge policy. The update aims to reduce financial pressure on heavily indebted nations, marking a significant shift in IMF practices. Victor Lledo, the IMF’s resident representative in Angola, shared these insights in an interview.
According to estimates from the IMF’s finance department, the revised policy will result in savings of 36.5 million Special Drawing Rights (SDRs) for Angola between May 2025 and April 2026.
At current exchange rates, this translates to approximately $48.5 million or €45.4 million. Lledo emphasized that the reform is expected to bring about a 57.4% reduction in Angola’s payments compared to the previous surcharge policy, signaling substantial relief for the country’s fiscal obligations.
IMF surcharges are additional fees applied to borrowing costs, imposed on nations with outstanding debts significantly exceeding their quota contributions to the Fund. These charges come on top of standard interest rates and margins, often increasing the financial strain on countries already managing large-scale economic challenges. Angola, like other nations under similar conditions, has been subject to these surcharges due to its reliance on IMF financial support to stabilize its economy and pursue structural reforms.
The revised surcharge policy aligns with growing calls from developing nations and international observers to make IMF loan terms more equitable, especially for countries grappling with debt sustainability issues. The reform is part of broader efforts to support Angola’s economic recovery and ensure its ability to meet financial commitments without compromising critical investments in social and economic development.
This policy change is expected to provide Angola with greater fiscal space to address domestic priorities, such as poverty reduction, infrastructure development, and economic diversification. It also reflects a recognition of the unique challenges faced by developing nations navigating the complexities of international debt obligations in a volatile global economy.
For Angola, which has been working to rebuild its economy and stabilize public finances, the savings from reduced surcharge payments represent an opportunity to reallocate resources toward fostering sustainable growth and resilience. This development underscores the importance of continued dialogue between international financial institutions and borrowing countries to create fairer frameworks for global financial cooperation.