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Breathing Space For Angola? IMF Gives $488 Million

IMF SDR
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EDITOR NOTE: When the IMF gets close to running out of emergency funds to help countries in dire financial need, it begins issuing its Special Drawing Right--a non-currency that, ironically, functions as a currency. Recently, it issued 338.5 million SDRs (worth $487.5 million) to Angola. In total, it has provided the country up to $3 billion worth since 2018. The problem with SDRs is that the IMF can choose at any time to print more of it, just like any central bank. Who pays for it? The cost is equally distributed across its member nations. If enough SDRs flood the global economy, not only will this elevate the IMF to the status of the world’s central bank, but SDRs will end up becoming the world’s new “reserve” currency--one based on the misguided panacea of monetary manipulation; essentially, money printing. The negative effects of inflation will be a claim on the future wealth prospects of its member nations. This is tantamount to economic slavery on a sovereign scale. We’ve suspected this to be the IMF's agenda all along. And the only currencies that can resist and protect against such coercive actions--be it the IMF or any central bank for that matter--are gold and silver.

When the International Monetary Fund held a press briefing about China and its Article IV review, on January 8, Inner City Press posed a question and got an answer, below.

Now on January 11 about Angola, the IMF says this: "The Executive Board of the International Monetary Fund (IMF) today completed the fourth review of Angola’s economic program supported by an extended arrangement under the Extended Fund Facility (EFF). The Board’s decision allows for an immediate disbursement of SDR 338.5 million - about $487.5 million, bringing total disbursements under the arrangement to SDR 2,143.2 million (about $3 billion). Angola’s three-year extended arrangement was approved by the Executive Board on December 7, 2018, in the amount of SDR 2.673 billion (about $3.7 billion at the time of approval). It aims to restore external and fiscal sustainability, improve governance, and diversify the economy to promote sustainable, private sector-led economic growth. At the time of the third review, the Executive Board also approved the authorities’ request for an augmentation of access of SDR 540 million (about $765 million at the time of approval) to support the authorities’ efforts to mitigate the impact of COVID-19 and sustain structural reform implementation. The multifaceted nature of the COVID-19 shock continues to negatively impact Angola’s economy and population. Oil production and prices remain weak, and the health and social impacts of the pandemic continue to be felt."

On January 8 Inner City Press asked the IMF's Helge Berger, Mission Chief, about China's so-called Belt and Road Initiative: "Your Article IV report cites China's "overseas lending projects" amid "rising geopolitical tensions and economic and trade frictions." How does the IMF think that rising debt levels among African countries, and increased skepticism about the "Belt and Road" will impact or be addressed going forward? -Matthew Russell Lee, Inner City Press. Videhere.

Berger responded about the IMF's work to provide lower income countries "breathing space." He said while the IMF generally welcomes the BRI it stresses the need for transparency, where the money is going.

(An aside: Inner City Press has reported on the CEFC China Energy Fund Committee's activities in Chad and Uganda and in the UN, on which the UN is UNresponsive.)

Other questions included China's digital currency (Inner City Press also reports on crypto-currency cases in the U.S. District Court for the Southern District of New York and elsewhere). Berger said when used overseas an issue is that residents could start using another country's currency, if it is easier.

Originally posted on Inner City Press

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