IMF ready to support African oil exporting countries – News Minute to

The IMF showed up on Sunday, willingness to assist financially and technically African oil exporting countries, which, by reducing the price of crude oil, should advance the fiscal adjustment and exchange rate flexibility.

“The International Monetary Fund (IMF) will maintain close engagement with African countries, supporting them with financial resources and technical advice if necessary,” said the director-general of the institution, Christine Lagarde, at the end of a meeting of the African Consultative Group, which was also chaired by the African Governors Group, led by the Minister of Finance of Angola Armando Manuel.

In a joint statement released on Sunday, Christine Lagarde and Armando Manuel remembered the fall in oil prices, although it is beneficial for importing countries, “brings significant challenges for African economies that export oil and will force the significant budgetary adjustments, such as greater exchange rate flexibility where possible.”

The IMF forecasts that the African economy to grow at a rate of over 4% in 2015, a moderate inflation environment, but that, in addition to downside risks arising from the oil price fall, is the impact that the reversal of monetary policies may have on loans

In this sense, the two parties propose “a balance” between the strengthening of international reserve positions, increased public and private investment and social spending.; beyond the increased budget and debt accumulation restraint, as well as the “concerted efforts” to restore peace and stability.

In view of the IMF’s warning, the president of the African Governors Group said ” African oil exporters recognize the need to make an immediate fiscal adjustment, while oil importers on the continent wish to take this opportunity to reduce energy subsidies, which have a high cost, and open fiscal space in support of their development objectives “.

In this context, said the Angolan minister,” African countries turn to the IMF to continue its effective engagement with Africa “, agreeing that” it is important that governments [ African] maintain macroeconomic stability, strengthen institutions and the business environment, colmatem the critical gaps in terms of infrastructure, expand access to financial services and seek to ensure that growth is both broad-based and inclusive. “