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Angola: Selected Issues and Statistical Appendix

Author(s):
International Monetary Fund
Published Date:
April 2005
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IV. External Vulnerability and Debt Sustainability37

A. Summary

89. The recent increase in oil prices has substantially reduced the size of Angola’s external debt relative to GDP and exports. Nevertheless, the country’s heavy dependency on oil exports, its low international reserves, and its commitments to repay large oil-backed loans mean that its external position will remain vulnerable over the next few years. 38 While ‘baseline’ economic projections indicate that Angola’s external debt ratios are likely to fall within the thresholds of sustainability within 2-3 years, stress tests indicate that external shocks within this period could lead to potentially serious external liquidity problems and that Angola’s vulnerability to further shocks could continue into the next decade.

90. To address this external vulnerability, Angola could consider ways of improving the overall composition of its debt. A shift towards concessional finance from IFIs and donors could help to make the structure and servicing of its debt more compatible with its needs for reconstruction and development. By using part of its recent oil revenue windfall to regularize its relations with creditors or to start to phase out its expensive oil-backed loans, it could also help to strengthen its overall creditworthiness.

B. Background

91. At end-2004, the level of Angola’s external debt is estimated, including arrears and late interest, at US$9.5 billion, and its official foreign currency assets are estimated at about US$2.2 billion.39 Since end-2001, both external debt and foreign assets have risen substantially in U.S. dollar terms, reflecting large fiscal deficits in 2002-03 and a build-up in the government’s foreign currency deposits in 2004. US$3.8 billion was disbursed in oil-backed commercial loans during this period and new credit lines were opened from China, Israel, India and Portugal, in addition to an existing line with Brazil. External debt rose in total by US$2.2 billion. Nevertheless, as a result of rising oil prices and production, the ratio of external debt to GDP declined from 81.3 percent at end-2001 to 48.6 percent at end-2004.

92. Angola’s exports of goods and services are predominantly from the oil sector (over 90 percent of total exports). Even when deductions are made from exports for associated oil sector outflows (largely in the form of services, profit remittances accruing to foreign oil companies, and payments for imports), net exports are thus highly sensitive to changes in oil prices or production. Largely in consequence, the ratio of external debt service to exports (net of oil-related imports) declined from 40 percent in 2002 to an estimated 23.4 percent in 2004.

93. The composition of external debt at end-2004 was fairly widely spread. Of Angola’s estimated medium and long-term debt of US$9.5 billion (including arrears and late interest), 4 percent was owed to multilaterals, 32 percent to Paris Club members, 21 percent to other official bilateral creditors, 37 percent to commercial banks, and 6 percent to suppliers. About a third of the debt was in arrears, mostly owed to official bilateral creditors. Angola has been servicing regularly its multilateral and commercial debt, and has restructured its arrears with Brazil, Germany, Poland, and Portugal.40 A deal to regularize Angola’s debt with Portugal was signed on August 5, 2004, restructuring about US$1.8 billion of debt, including nearly US$1.0 billion of official debt. The deal involved a cash payment of US$258 million to the Portuguese authorities, in return for a reduction in its outstanding debt to US$698 million and a rescheduling of repayments over 28 years at an interest rate of 1 percent a year, and a setting-aside of US$500 million for settlement of all outstanding arrears with commercial banks and private suppliers. Angola drew on US$750 million from the 2004 oil-backed commercial loan to finance these transactions.

C. Outlook

94. The baseline scenario (Figure IV.1 and Table IV.1) suggests that, while Angola’s external debt is currently very high relative to resource flows, it is likely to be sustainable in the long term. The net present value (NPV) of debt-to-GDP is projected to decline from 130 percent at end-2004 to 60 percent by 201241 and NPV of debt-to-net exports to decline from 300 percent in 2005 to 150 percent by 2012. This scenario assumes rescheduling of arrears on nonconcessional terms. 42 Oil prices are based on the interim WEO projection, implying that the average price for Angola’s oil will decline from US$39.2 per barrel in 2005 to US$36.7 in 2006, and will reach a price of US$ 30.5 (in today’s dollars) in 2009 and beyond. Annual growth in oil production from 2005 - 2009 will average 18 percent. Oil companies’ share of oil export receipts is assumed at about 60 percent.

Figure IV.1.Angola: Indicators of Public and Publicly Guaranteed External Debt Under Baseline Scenario, 2004-2024 1/

(In percent)

Source: Staff projections and simulations.

1/ Assuming rescheduling of arrears on non-concessional terms (Houston terms), and including new borrowing.

Table IV.1.Angola: External Debt Sustainability Framework, Baseline Scenario, 2001-2024 1/(In percent of GDP, unless otherwise indicated)
ActualHistoricalStandardEstimateProjections
Average 5/Deviation 5/2004-092010-24
200120022003200420052006200720082009Average20142024Average
External debt (nominal) 1/98.981.069.948.637.628.822.220.320.717.55.0
Change in external debt-1.0-17.8-11.1-21.3-11.1-8.8-6.6-1.90.4-1.1-0.5
Identified net debt-creating flows4.8-13.4-16.6-10.7-9.8-12.2-8.2-2.0-0.71.81.1
Non-interest current account deficit8.8-1.93.35.912.3-8.6-6.7-6.4-4.8-4.0-4.10.70.91.2
Deficit in balance of goods and services-1.6-13.5-6.6-18.3-14.7-18.4-21.5-21.9-23.5-2.3-0.3
Exports76.579.170.271.373.677.680.177.475.264.146.7
Imports74.965.663.753.058.959.258.755.551.761.946.5
Net current transfers (negative = inflow)-1.0-0.3-0.7-1.00.7-0.5-0.6-0.5-0.4-0.1-0.1-0.1-0.1-0.1
Other current account flows (negative = net inflow)11.411.910.510.28.612.417.118.119.63.11.3
Net FDI (negative = inflow)-12.32.2-4.0-10.612.71.60.40.20.32.33.51.20.30.8
Endogenous debt dynamics 2/8.3-13.7-15.8-3.7-3.5-5.9-3.7-0.4-0.1-0.1-0.1
Contribution from nominal interest rate6.03.31.91.82.01.61.31.11.10.90.2
Contribution from real GDP growth-3.2-11.8-2.2-5.6-5.5-7.6-5.0-1.5-1.2-1.1-0.3
Contribution from price and exchange rate changes5.4-5.2-15.6
Residual 3/6/-5.7-4.45.5-10.6-1.33.41.60.11.2-2.9-1.6
o/w exceptional financing-3.7-3.2-2.42.3-1.10.00.00.00.00.00.0
NPV of external debt176.4135.8114.997.484.082.582.856.320.2
In percent of net exports511.2315.0275.0229.8197.2192.1195.9145.981.1
Debt service-to-net exports ratio (in percent)141.140.039.023.418.512.712.010.88.45.53.6
Total gross financing need (millions of U.S. dollars)2,4651,8301,755602343-2522041,0741,1212,4093,087
Non-interest current account deficit that stabilizes debt ratio9.815.914.412.74.42.31.8-2.1-4.51.81.4
Key macroeconomic assumptions
Real GDP growth (in percent)3.114.43.45.74.511.213.824.520.57.16.313.96.36.36.3
GDP deflator in US dollar terms (change in percent)-5.25.623.86.623.727.07.5-2.1-2.6-1.4-0.94.63.03.03.0
Effective interest rate (percent) 4/5.94.03.15.11.33.75.15.35.35.45.75.15.64.25.6
Growth of exports of G&S (US dollar terms, in percent)-16.524.813.815.433.143.526.228.521.22.02.320.66.16.16.1
Growth of imports of G&S (US dollar terms, in percent)16.75.724.39.813.017.736.022.516.20.0-2.015.16.66.19.0
Grant element of new public sector borrowing (in percent)-0.1-0.1-0.1-0.1-0.1-0.1-0.13.7-0.11.2
Memorandum items:
Nominal GDP (billions of US dollars)8.910.813.819.523.929.134.236.138.059.8148.1
Exports (in billions of U.S. dollars)6.88.59.713.917.622.627.427.928.638.469.2
Net exports (in billions of U.S. dollars)2.04.54.88.410.012.414.615.516.123.136.9
Source: Staff simulations.

Includes both central government’s and Sonangol’s external debt.

Derived as [r - g -ρ(1+g)]/(1+g+ρ+gρ) times previous period debt ratio, withr = nominal interest rate; g = real GDP growth rate, and ρ = growth rate of GDP deflator in U.S. dollar terms.

Includes exceptional financing (i.e., changes in arrears and debt relief); changes in gross foreign assets; and valuation adjustments. For projections also includes contribution from price and exchange rate changes.

Current-year interest payments devided by previous period debt stock.

Historical averages and standard deviations are generally derived over the past 10 years, subject to data availability.

Includes central government foreign currency deposit in 2003 and 2004.

Source: Staff simulations.

Includes both central government’s and Sonangol’s external debt.

Derived as [r - g -ρ(1+g)]/(1+g+ρ+gρ) times previous period debt ratio, withr = nominal interest rate; g = real GDP growth rate, and ρ = growth rate of GDP deflator in U.S. dollar terms.

Includes exceptional financing (i.e., changes in arrears and debt relief); changes in gross foreign assets; and valuation adjustments. For projections also includes contribution from price and exchange rate changes.

Current-year interest payments devided by previous period debt stock.

Historical averages and standard deviations are generally derived over the past 10 years, subject to data availability.

Includes central government foreign currency deposit in 2003 and 2004.

95. A fall in international oil prices or a disruption in oil production could nevertheless reverse the projected improvements, putting pressure on the low levels of foreign currency assets. Also, Angola’s external debt arrears increase the perceived risks for creditors and consequently Angola’s borrowing costs.

96. Several stress tests are outlined in Figure IV.2 and Table IV.2. These suggest that the current high level of debt will leave Angola in a vulnerable debt situation over the next few years, which may lead to liquidity problems. Under the most extreme stress test (in which the projected growth in export value is set at its historical average minus half a standard deviation), the debt dynamics would clearly not be sustainable until 2020: NPV of debt-to-GDP would, in this case, remain well above 150 percent and debt service-to-net exports would be in the range of 40-70 percent until 2015. This scenario is particularly fragile as official reserves are assumed to stay close to only about 2 months of imports (and below 4 months of non-oil related imports) during the projection period.43 Less extreme stress tests indicate that debt sustainability could be achieved at an earlier date, but that vulnerability would nevertheless be high in the short term.

Figure IV.2.Angola: Indicators of Public and Publicly Guaranteed External Debt Under Alternative Scenarios, 2004-2024

(In percent)

Source: Staff projections and simulations.

Table IV.2.Angola: Sensitivity Analyses for Key Indicators of Public and Publicly Guaranteed External Debt, 2004-24(In percent)
Est.Projections
2004200520062007200820142015201620232024
NPV of debt-to-GDP ratio
Baseline1361159784825651462320
A. Alternative Scenarios
A1. Key variables at their historical averages in 2004-23 1/1361361371351306861553230
A2. New public sector loans on less favorable terms in 2004-23 2/1361159884835954492624
B. Bound Tests
B1. Real GDP growth at historical average minus one standard deviation in 2004-051361291351161147870643128
B2. Export value growth at historical average minus one standard deviation in 2004-05 3/1361321451271236053482320
B3. US dollar GDP deflator at historical average minus one standard deviation in 2004-051361491491291268678713431
B4. Net non-debt creating flows at historical average minus one standard deviation in 2004-05 4/13611810490885751462320
B5. Combination of B1-B4 using one-half standard deviation shocks1361602111841799282733531
B6. One-time 30 percent nominal depreciation relative to the baseline in 2004 5/1361591351161147871643128
B7. Lower oil prices 7/1361311251091055852472320
NPV of debt-to-net exports ratio
Baseline3152752301971921461401338781
A. Alternative Scenarios
A1. Key variables at their historical averages in 2004-23 1/315326324317303176167159123122
A2. New public sector loans on less favorable terms in 2004-23 2/31527623119819415414914210094
B. Bound Tests
B1. Real GDP growth at historical average minus one standard deviation in 2004-053152752301971921461401338781
B2. Export value growth at historical average minus one standard deviation in 2004-05 3/315411589515495267252236150140
B3. US dollar GDP deflator at historical average minus one standard deviation in 2004-053152752301971921461401338781
B4. Net non-debt creating flows at historical average minus one standard deviation in 2004-05 4/3152832452112051471411348781
B5. Combination of B1-B4 using one-half standard deviation shocks315374484422407232220206132123
B6. One-time 30 percent nominal depreciation relative to the baseline in 2004 5/3152752301971921461401338781
B7. Lower oil prices 7/3154023542922721651571489589
Debt service-to-net export ratio
Baseline231813121156744
A. Alternative Scenarios
A1. Key variables at their historical averages in 2004-23 1/23212126313128252222
A2. New public sector loans on less favorable terms in 2004-23 2/23191513141716141110
B. Bound Tests
B1. Real GDP growth at historical average minus one standard deviation in 2004-0523191618192120181313
B2. Export value growth at historical average minus one standard deviation in 2004-05 3/23253243554341362322
B3. US dollar GDP deflator at historical average minus one standard deviation in 2004-0523191618192120181313
B4. Net non-debt creating flows at historical average minus one standard deviation in 2004-05 4/23191719212120181313
B5. Combination of B1-B4 using one-half standard deviation shocks23232736453735312019
B6. One-time 30 percent nominal depreciation relative to the baseline in 2004 5/23191618192120181313
B7. Lower oil prices 7/23252225322524211514
Memorandum items:
Exports (in billions of U.S. dollars)13.917.622.627.427.938.440.743.265.269.2
Net exports (in billions of U.S. dollars)8.49.912.414.615.523.123.724.935.136.9
Source: Staff projections and simulations.

Variables include real GDP growth, growth of GDP deflator (in U.S. dollar terms), non-interest current account in percent of GDP, and non-debt creating flows.

Assumes that the interest rate on new borrowing is by 2 percentage points higher than in the baseline., while grace and maturity periods are the same as in the baseline.

Exports values are assumed to remain permanently at the lower level, but the current account as a share of GDP is assumed to return to its baseline level after the shock (implicitly assumingan offsetting adjustment in import levels).

Includes official and private transfers and FDI.

Depreciation is defined as percentage decline in dollar/local currency rate, such that it never exceeds 100 percent.

Applies to all stress scenarios except for A2 (less favorable financing) in which the terms on all new financing are as specified in footnote 2.

Assumes oil prices of US$30.2 per barrel in 2005 and US$30.6 per barrel in 2006.

Source: Staff projections and simulations.

Variables include real GDP growth, growth of GDP deflator (in U.S. dollar terms), non-interest current account in percent of GDP, and non-debt creating flows.

Assumes that the interest rate on new borrowing is by 2 percentage points higher than in the baseline., while grace and maturity periods are the same as in the baseline.

Exports values are assumed to remain permanently at the lower level, but the current account as a share of GDP is assumed to return to its baseline level after the shock (implicitly assumingan offsetting adjustment in import levels).

Includes official and private transfers and FDI.

Depreciation is defined as percentage decline in dollar/local currency rate, such that it never exceeds 100 percent.

Applies to all stress scenarios except for A2 (less favorable financing) in which the terms on all new financing are as specified in footnote 2.

Assumes oil prices of US$30.2 per barrel in 2005 and US$30.6 per barrel in 2006.

97. A particularly relevant stress test shown in these examples involves the possibility of a significant fall in Angola’s oil prices during the remainder of this decade, after which oil prices would remain at their projected long-term level in real terms. This scenario would be equivalent to an immediate reduction in oil receipts of about 20 percent. The test indicates that Angola would remain vulnerable, in such a circumstance, for some time. Liquidity problems would be potentially severe in the short term, with the debt service-to export ratio again rising over 30 percent and remaining high through 2011. The NPV of debt-to-net exports would be well above 150 percent until 2014.

98. In the case of such adverse external shocks, much of Angola’s debt would continue to be serviced as most commercial loans and lines of credit are met by earmarked oil shipments. As a result, these debt service payments would crowd out non-oil related imports and budget expenditure. There could therefore be severe implications for non-oil sector growth.

99. Angola’s external vulnerability could be reduced by addressing the composition as well as the level of its external debt. One option could be to try to borrow on more concessional terms and longer maturities. The remaining external debt in arrears might also be restructured (possibly with some debt relief). Also, Angola could use part of the current oil revenue windfall to regularize its relations with creditors in advance of formal negotiations or to start to phase out its expensive oil-backed loans. Apart from the direct cost reduction achieved by a shift in the composition of debt, or by restructuring, the decline in external vulnerability thus achieved might reduce the spreads of any new commercial loans; and a regularization of Angola’s relations with official bilateral creditors would allow increased access to export credit agencies.

STATISTICAL APPENDIX
Table 1.Angola: Basic Data, 1999 - 2003
Macroeconomic Indicators19992000200120022003
(Annual percentage change, unless otherwise indicated)
National income and prices
Nominal GDP (in billions of kwanzas)17.291.7197.1471.61,031.4
Real GDP growth3.23.03.114.43.4
GDP deflator551418108109111
Consumer price index (annual average)24832515310998
Consumer price index (end of period)32926811610677
Government budget
Total revenue89647893115103
Total expenditure1,18628480143100
(In percent of GDP)
Total revenue46.450.245.140.537.5
Of which: oil40.744.935.931.028.2
Total expenditure81.558.649.049.845.5
Overall balance (commitment basis)-35.2-8.4-4.0-9.3-7.9
Overall balance (cash basis)-24.417.1-5.1-1.5-7.3
Primary balance (commitment basis)-26.1-2.91.0-6.0-6.1
(Annual percentage change, unless otherwise indicated)
Money and credit 1/
Net domestic assets-362-327544822
Broad money Velocity (Non-oil GDP/average M2)53330416315867
Velocity (Non-oil GDP/average M2)3.23.73.43.03.7
Interest rate (three-month time deposits; in percent, end of period)35.546.056.141.046.0
External sector
Exports, f.o.b.45.953.6-16.225.514.2
Crude oil46.457.8-16.730.313.0
Other43.129.1-12.9-7.625.0
Imports, f.o.b.49.5-2.24.618.345.7
Terms of trade49.356.8-13.91.44.2
Official exchange rate (dollar terms, end of period)5.616.831.958.779.1
Nominal effective exchange rate-74-73-60-47-47
Real effective exchange rate 2/-192013218
(In millions of U.S. dollars, unless otherwise indicated)
Overall balance of payments-126295-842-551-29
External payment arrears (end of period) 3/4,1534,2984,201
Gross international reserves (end of period)4961,198732375636
In months of imports of non-oil goods and services2.35.02.10.91.2
(In percent of GDP, unless otherwise indicated)
Current account balance-27.88.7-14.9-1.4-5.2
Debt (including arrears and late interest)818170
Debt service ratio 4/176751414039
Debt service-to-government revenue ratio 5/
Use of Fund resources
Fund arrangementNoneNoneNoneNoneNone
Quota (millions of SDRs)286286286286286
Sources: Angola authorities; and staff estimates.

As a percentage of broad money at the beginning of the period.

Increase = appreciation.

Excludes late interest.

Scheduled debt service in percent of exports of goods and services, excluding oil related expenses.

Medium- and long-term debt service due in percent of exports of goods and services or government revenues in millions of U.S. dollars.

Sources: Angola authorities; and staff estimates.

As a percentage of broad money at the beginning of the period.

Increase = appreciation.

Excludes late interest.

Scheduled debt service in percent of exports of goods and services, excluding oil related expenses.

Medium- and long-term debt service due in percent of exports of goods and services or government revenues in millions of U.S. dollars.

Table 1.Angola: Basic Data (concluded)
Social and Demographic IndicatorsSub-Saharan
AngolaYearAfricaYear
Population (millions)13.520037032003
United Nations Human Development Index0.4020000.472000
Labor force growth (annual percentage change)2.91994-20002.61994-2000
Population growth (annual percentage change)3,020032,12003
Fertility rate (births per woman)7.020025.12002
Access to sanitation (percent of total population)442000542000
Internally displaced people (millions)3.92001
Child malnutrition (in percent of children under 5 years)312001
DPT immunization (percent of age group)221999581999
Arable land (percent of total land area)2.419986.51998
Access to an improved water source (percent of total population)382000582000
Urban population (percent of total population)342000332002
Measles immunization (percent of age group)742002582002
Life expectancy at birth (years)472002462002
Illiteracy (percent of population age above 15 years)332001382000
Labor force in agriculture (percent of total)751996651996
Infant mortality (per 1,000 live births)15420031032002
School enrolment (percent of total)231999421999
GNI per capita (PPP, U.S. dollars)1,89020031,7702003
Area (thousands of square kilometers)1,247200023,6032000
Daily calorie supply per capita1,90319972,2371997
Sources: Angolan authorities, Poverty Reduction Strategy, 2004; World Bank, World Development Indicators, 2003; and United Nations Development Program, Human Development Report, 2001.
Sources: Angolan authorities, Poverty Reduction Strategy, 2004; World Bank, World Development Indicators, 2003; and United Nations Development Program, Human Development Report, 2001.
Table 2.Angola: Gross Domestic Product by Sector of Activity, 1999-2003
19992000200120022003
(In billions of kwanzas)
Agriculture, forestry, and fishing1.15.216.138.184.9
Mining11.460.9113.1273.5545.4
Oil and LPG 1/10.055.1100.9251.0498.5
Diamonds1.45.912.122.546.9
Manufacturing0.62.67.617.639.3
Electricity and water0.00.00.10.20.4
Construction0.52.57.116.436.8
Trade and commerce2.613.130.467.1146.8
Nontradable services0.86.118.450.3155.9
Import duties0.21.24.38.522.0


GDP at market prices


17.2


91.7


197.1


471.6


1,031.4
(Real growth rates in percent)
Agriculture, forestry, and fishing1.39.318.013.311.7
Mining5.82.01.018.2-0.3
Oil and LPG 1/1.00.4-1.020.6-2.1
Diamonds39.513.319.5-2.120.0
Manufacturing7.28.99.810.212.0
Electricity and water1.30.810.010.010.0
Construction5.07.58.510.012.5
Trade and commerce4.43.46.011.69.9
Nontradable services-7.51.51.02.51.9
Import duties-10.00.02.55.010.0


GDP


3.2


3.0


3.1


14.4


3.4
Non-oil GDP4.66.69.47.99.8
Sources: Angolan authorities; and staff calculations.

Liquefied petroleum gas.

Sources: Angolan authorities; and staff calculations.

Liquefied petroleum gas.

Table 3.Angola: Production of Selected Manufactured Products, 1999-2003(In metric tons, unless otherwise specified)
19992000200120022003
Food, beverages, and tobacco
Dry fish6,1255,8186,91710,07012,201
Frozen fish41,53449,58057,82143,88636,173
Canned fish311
Edible oil1,5231,967
Wheat flour57,49368,99120,30620,97838,168
Maize flour212
Yam flour
Bread87,517105,016313,747264,034
Pasta163195211112
Salt38,51747,17026,67521,62621,280
Beer (in thousands of liters)160,942193,13182,03179,989191,961
Other alcoholic beverages (in thousands of liters)12,19511,4729,7605,8705,367
Nonalcoholic beverages (in thousands of liters)4,1252,90082,03156,04388,776
Tobacco748897316627662
Textiles, clothing, and leather
Fabric (in thousands of square meters)316378
Clothing and accessories1821
Leather shoes2530403458212
Chemicals and plastics
Paints1,0731,287641,023
Soap8,56510,2782,5793074,610
Plastic containers101246344148
Gasoline128,113111,379107,244104,63195,913
Diesel493,019468,422501,704461,014407,542
Kerosene30,39430,24931,17736,85743,908
Butane gas30,48329,60431,48734,34029,983
Asphalt6,0749,6969,2966,7337,760
Fuel oil646,819595,253552,820590,676639,319
Fuel (extra heavy)51,98065,13076,06869,04776,927
Jet fuel338,465320,743330,876352,489324,841
Nafta105,176107,08589,05175,408
Oils and lubricants
Construction material
Pipe1,7052,0463,680465184
Zinc sheet7539034,2873,379
Cement206,750200,625465,542312,750500,620
Electric products
Electric cables5566
Batteries2,7853,342
Refrigerators6225,782
Source: Ministry of Planning.
Source: Ministry of Planning.
Table 4.Angola: Oil Production by Oil Field, 1999-2003
19992000200120022003
(Thousands of barrels per day)
Total production746748741894875
Cabinda460445460431405
Block 112210
Block 28372635045
Block 3174148138139125
Block 4118410
Block 14161576661
Block 17004193216
Congo1611121313
Kwanza00000
(In millions of barrels)
Total production to date 1/4,1334,4064,6765,0035,322
Cabinda2,6942,8573,0253,1823,330
Block 13131323232
Block 2337363386405421
Block 3694748798849894
Block 43235363636
Block 14123446890
Block 1700172151
Congo245249260265262
Kwanza9393939393
Source: Ministry of Petroleum.

At year’s end.

Source: Ministry of Petroleum.

At year’s end.

Table 5.Angola: Oil Balance, 1999-2003
19992000200120022003
(In millions of barrels)
Crude oil
Production272273270326319
Domestic refinery1414161616
Exports 1/254256255311302
Net change in stocks 2/53-1-20
(In thousands of metric tons)
Derivatives
Supply1,9561,975
Domestic production1,8601,771
Imports96204
Uses1,9561,975
Domestic sales1,0031,045
Diesel (gas oil)395428
Gasoline117103
Fuel oil5480
Jet fuels314316
Kerosene5345
Gas (liquefied petroleum gas)5452
Other1621
Exports 3/832791
Net change in stocks121139
Sources: Ministry of Petroleum, Sonangol (state-owned oil company), National Bank of Angola, and staff estimates.

As reported in balance of payments. Other sources differ slightly.

Includes pipeline losses and field consumption, as well as any discrepancies.

As reported in balance of payments; excludes natural gas liquids.

Sources: Ministry of Petroleum, Sonangol (state-owned oil company), National Bank of Angola, and staff estimates.

As reported in balance of payments. Other sources differ slightly.

Includes pipeline losses and field consumption, as well as any discrepancies.

As reported in balance of payments; excludes natural gas liquids.

Table 6.Angola: Mining Production, 1999-2003
19992000200120022003
(In units indicated)
Crude oil
In millions of barrels272273270326319
In thousands of barrels per day746748741894875
Liquefied petroleum gas
In thousands of barrels623.81,475.11,068.1636.4635.6
Diamonds (production)
In thousands of carats3,8064,3135,1595,5006,063
(Annual percentage change)
Crude oil1.00.3-1.120.7-2.2
Liquefied petroleum gas-8.3136.5-27.6-40.4-0.1
Diamonds (recorded exports)37.613.319.66.610.2
Sources: Ministry of Petroleum; Endiama; and staff estimates.
Sources: Ministry of Petroleum; Endiama; and staff estimates.
Table 7.Angola: Prices of Petroleum Products, 1999-2003(End-of-period data)
19992000200120022003
(Kwanzas per liter, unless otherwise indicated)
Gasoline0.34.08.212.012.0
Kerosene0.12.05.07.87.8
Diesel (gas oil)0.12.05.68.08.0
Fuel oil (light) 1/0.11.64.16.46.4
Fuel oil (heavy) 1/0.11.13.06.66.6
LPG 2/0.44.07.010.210.2
(U.S. dollars per gallon, unless otherwise indicated)
Gasoline0.981.281.090.770.57
Kerosene0.490.830.660.500.37
Diesel (gas oil)0.500.850.740.520.38
Fuel oil (light) 1/0.360.680.540.410.31
Fuel oil (heavy) 1/0.250.700.400.430.32
LPG 2/1.411.090.930.660.49
(Annual percentage change in kwanzas terms)
Gasoline3330105460
Kerosene1869150560
Diesel (gas oil)3271180430
Fuel oil (light) 1/3388152580
Fuel oil (heavy) 1/321811761210
LPG 2/29-2375460
Sources: Ministry of Finance; and staff estimates.

Kwanzas per kilogram.

Liquefied petroleum gas.

Sources: Ministry of Finance; and staff estimates.

Kwanzas per kilogram.

Liquefied petroleum gas.

Table 8.Angola: Consumer Price Index in Luanda, December 1999- December 2003(CPI level expressed in millions)
Weights 1999199920002001Weights 2002 1/20022003
(In percent)Dec.Dec.Dec.(In percent)Dec.Dec.
Food and non-alcoholic beverages 2/74.13.611.222.546.1218.8394.4
Food, beverages, and tobacco 2/4.0193.0354.1
Clothing and footwear5.55.221.445.76.0241.8379.4
Housing, water, energy, and utilities 3/5.528.4157.8434.212.3175.7293.7
Furniture and appliances4.77.022.633.36.5217.3354.3
Health1.84.312.525.13.4172.3232.7
Transport 4/3.919.165.7110.06.5156.8298.2
Communications 4/1.1264.8441.3
Leasure, recreation, and culture2.5205.3340.7
Education2.76.224.247.02.1156.0266.5
Hotel, cafes, and restaurants4.4188.1309.7
Other goods and services1.9411215.1217.9334
Total100.05.118.740.5100.0205.6363.0 5/
(Percent change over previous year)
Food and non-alcoholic beverages 2/41621610111980
Food, beverages, and tobacco 2/9383
Clothing and footwear36431311314257
Housing, water, energy, and utilities 3/1284561757667
Furniture and appliances4492224711763
Health3171921017235
Transport 4/824244675790
Communications 4/16567
Leasure, recreation, and culture10566
Education313293945671
Hotel, cafes, and restaurants8865
Other goods and services3811739811853
Total32926811610677 5/
Source: National Institute of Statistics.

Starting in January 2002, the method of calculation for the CPI was updated on the basis of a consumer and expenditure survey carried out between February 2000 and February 2001. Accordingly, the weighting scheme has been updated, the number of items included in the basket has been increased to 224 (from 159 previously), and the index is now divided into 12 major categories (instead of 8 previously).

Before January 2002, these two categories were both under “Food, beverages, and tobacco”.

Before January 2002 this category did not include water.

Before January 2002 these two categories were both under “Transport and communication”.

Uses updated weights.

Source: National Institute of Statistics.

Starting in January 2002, the method of calculation for the CPI was updated on the basis of a consumer and expenditure survey carried out between February 2000 and February 2001. Accordingly, the weighting scheme has been updated, the number of items included in the basket has been increased to 224 (from 159 previously), and the index is now divided into 12 major categories (instead of 8 previously).

Before January 2002, these two categories were both under “Food, beverages, and tobacco”.

Before January 2002 this category did not include water.

Before January 2002 these two categories were both under “Transport and communication”.

Uses updated weights.

Table 9.Angola: Average Exchange Rates, December 1999- December 2003(Kwanzas per U.S. dollar, unless otherwise indicated)
Reference

Rate 1/
Monthly

Change

(In percent)
Parallel

Market

Rate
Monthly

Change

(In percent)
Informal Market

Premium

(In percent)
1999
December5.5095.6242.1
2000
December16.0911.217.6513.69.7
2001
January17.9111.319.9212.911.2
February19.559.219.85-0.31.5
March19.610.320.533.44.7
April19.42-0.920.801.37.1
May19.540.621.513.410.1
June19.811.423.378.618.0
July20.634.223.440.313.6
August21.745.423.440.07.8
September23.407.625.267.88.0
October25.127.427.277.98.6
November27.469.328.424.23.5
December30.5011.133.5618.110.0
2002
January32.877.835.656.28.4
February34.625.334.93-2.00.9
March36.385.137.276.72.5
April38.064.638.713.81.7
May40.115.440.755.31.6
June42.185.243.105.82.2
July44.555.645.405.31.9
August46.414.249.098.15.8
September48.464.450.272.43.7
October50.574.451.542.51.9
November53.145.154.115.01.8
December57.097.462.3715.39.2
2003
January60.646.266.12-5.79.0
February64.756.865.96-0.21.9
March67.494.270.166.43.9
April70.224.172.703.63.5
May73.234.375.644.03.3
June76.434.478.083.22.2
July80.885.883.366.83.1
August85.635.989.897.85.0
September80.47-6.085.27-5.16.0
October78.64-2.382.23-3.64.6
November78.41-0.381.46-0.93.9
December78.480.183.232.26.0
Source: National Bank of Angola.

Monthly averages of buying and selling daily average exchange rates in the interbank foreign exchange market.

Source: National Bank of Angola.

Monthly averages of buying and selling daily average exchange rates in the interbank foreign exchange market.

Table 10.Angola: Balance of Payments, 1999-2003
19992000200120022003
(In millions of U.S. dollars)
Current account-1,710795-1,329-150-720
Of which: Oil-sector1,6453181,3623,8561,971
Trade balance2,0484,8803,4574,5684,028
Exports, fob5,1577,9206,6368,3289,508
Crude oil4,4066,9515,7927,5488,533
Refined oil products and gas85169113105147
Diamonds629739689638788
Other3761433640
Imports, fob-3,109-3,040-3,179-3,760-5,480
Oil-sector-1,152-1,127-1,178-1,393-2,022
Non-oil sector-1,957-1,913-2,001-2,367-3,458
Services (net)-2,442-2,432-3,316-3,115-3,120
Receipts153267203207201
Payments-2,595-2,699-3,518-3,322-3,321
Oil-sector-1,892-1,968-2,643-1,550-1,654
Non-oil sector-703-731-875-1,772-1,667
Income (net)-1,372-1,681-1,561-1,635-1,726
Receipts-1,222-1,525-1,4661812
Payments-1,652-1,739
Of which: oil sector-923-1,131-1,051-1,100-1,264
Of which: Interest due 1/-569-597-539-354-268
Current transfers (net)5628913299
Financial and capital account1,664-450954-5521,103
Capital transfers (net)718400
Direct investments (net)2,4728792,1461,6431,652
Of which: Oil sector93504501,6723,505
Medium-and long-term loans-291-766-618-162298
Disbursements1,5011,6101,6191,2791,890
Amortizations-1,791-2,376-2,237-1,441-1,592
Other capital (net)-524-580-577-2,033-847
Net errors and omissions-80-50-467150-388
Overall balance-126295-842-551-5
Net international reserves (-increase)-530-631508207-325
Exceptional financing656336334344330
Debt rescheduling and debt forgiveness02024010268
Arrears, net (+ increase) 1/65613429433463
Memorandum items:
(In percent of GDP; unless otherwise indicated)
Current account-27.88.7-14.9-1.4-5.2
Exports of goods and services86.389.676.579.163.2
Imports of goods and services92.762.874.965.663.7
External debt (in billion of dollars)7.38.79.7
External debt81.381.069.9
Debt service ratio 2/44.436.3141.140.039.0
Gross international reserves (end of period)4961,198732375660
In months of imports of goods and services 3/1.02.11.20.50.8
In months of imports of non-oil sector goods and services 3/2.35.02.10.91.2
In months of debt service 3/2.05.24.92.45.4
(In percentage change)
Export of goods4654-162514
Import of goods50-251846
Export volumes12-121-3
Import volumes49-231432
Terms of trade4957-1414
Source: National Bank of Angola.

Includes late interest.

In percent of exports of goods and services, excluding oil related expenses.

In months of next year’s imports or medium- and long-term debt service. In 2003, using current year’s data.

Source: National Bank of Angola.

Includes late interest.

In percent of exports of goods and services, excluding oil related expenses.

In months of next year’s imports or medium- and long-term debt service. In 2003, using current year’s data.

Table 11.Angola: Foreign Exchange Reserves, 1999-2003(In millions of U.S. dollars, unless otherwise specified; end of period)
199819992000200120022003
Net foreign assets (banking system)2411,0341,8151,4951,5941,825
Net international reserves 1/-2314081,039531324649
Gross reserves2034961,198732375660
BNA2034961,198732375634
Gold000000
Sight deposits1414526513467492
Time deposits6243547386301542
Government deposits abroad 2/0000026
Foreign liabilities (short term)-434-88-159-201-52-11
Other net foreign assets (BNA)-11-3-53-47-56-18
Other foreign assets (medium and long term)000002
Other foreign liabilities (medium and long term) (-)-11-3-53-47-56-20
Commercial banks (net)4836288291,0111,3271,194
Foreign assets6827478781,1691,4541,284
Foreign liabilities (-)-199-119-49-157-127-90
Memorandum items:
National Bank of Angola
Change in net international reserves-321639631-508-207300
Change in gross reserves-193293702-466-356259
Import coverage (of gross reserves) 3/0.41.02.11.20.50.8
Source: National Bank of Angola.

Excludes medium- and long-term assets and liabilities.

Estimates

In months of following year’s imports.

Source: National Bank of Angola.

Excludes medium- and long-term assets and liabilities.

Estimates

In months of following year’s imports.

Table 12.Angola: Direction of Merchandise Exports, 1999–2003 1/
19992000200120022003
(In millions of U.S. dollars)
Total 1/4,3947,3646,2207,0858,693
Africa4417111080
Of which: South Africa32101156
European Union7461,2761,6412,0301,282
Of which: Portugal1047106563
USA2,3373,2852,9792,9784,097
Other1,2672,7861,5892,0672,067
(Shares in percent of total)
Africa1.00.20.20.10.9
Of which: South Africa0.70.10.00.00.6
European Union17.017.326.428.714.8
Of which: Portugal0.20.61.70.80.0
USA53.244.647.942.047.1
Other28.837.825.529.223.8
(Percent change from previous year)
Total 1/26.467.6-15.513.922.7
Africa322.5-61.5-38.3-1.7676.6
Of which: South Africa1,018.3-69.5-86.58.53,805.5
European Union26.071.228.623.7-36.8
Of which: Portugal-55.5372.4126.7-47.1-95.5
USA4.940.6-9.3-0.137.6
Other95.8119.9-43.030.10.0
Memorandum item:
Total as percent of staff’s estimate of total exports, f.o.b (Table 10)103.9113.4114.3103.8111.5
Source: IMF, Direction of Trade Statistics.

Data provided by partner countries.

Source: IMF, Direction of Trade Statistics.

Data provided by partner countries.

Table 13.Angola: Commodity Composition of Exports, 1999-2003(In millions of U.S. dollars; unless otherwise indicated)
19992000200120022003
Total exports5,1577,9206,6368,3289,508
Crude oil4,4066,9515,7927,5488,533
Volume (millions of barrels)253.6256.1255.2311.5302.4
Price (U.S. dollars per barrel)17.427.122.724.228.2
Refined petroleum products751329395132
Volume (thousands of metric tons)720.3733.5675.0673.5681.8
Price (U.S. dollars per metric ton)104.6179.8137.3141.7193.1
Liquefied Natural Gas937201016
Volume (thousands of barrels)623.81,475.11,068.1636.4635.6
Price (U.S. dollars per barrel)15.025.018.815.724.6
Diamonds629739689638788
Volume (thousands of carats)3806.04318.95158.95022.36063.1
Price (U.S. dollars per carat)165.3171.2133.5127.1130.0
Coffee4.01.20.60.40.8
Volume (thousand metric tons)3006.81290.3855.0611.7918.5
Price (U.S. dollars per metric ton)1339.3908.3687.0593.5836.5
Other3360423639
Memorandum items:
Total exports (percent change)45.953.6-16.225.514.2
Total exports (in percent of GDP)83.886.774.377.268.8
Petroleum (in percent of total exports)87.189.989.091.991.3
Diamonds (in percent of total exports)12.29.310.47.78.3
Other (in percent of total exports)0.60.80.60.40.4
Source: National Bank of Angola.
Source: National Bank of Angola.
Table 14.Angola: Origin of Merchandise Imports, 1999–2003 1/
19992000200120022003
(In millions of U.S. dollars)
Total, c.i.f. 1/2,2392,1843,4643,1054,470
Africa257426477519629
Of which: South Africa211340418454550
European Union9871,0171,3411,4492,334
Of which: Portugal323373493595810
USA278241304410541
Other7175011,342727966
(Shares in percent of total)
Africa11.519.513.816.714.1
Of which: South Africa9.415.612.114.612.3
European Union44.146.638.746.752.2
Of which: Portugal14.417.114.219.218.1
USA12.411.08.813.212.1
Other32.022.938.823.421.6
(Percent change from previous year)
Total 1/0.4-2.558.6-10.444.0
Africa-3.865.412.18.721.3
Of which: South Africa-1.961.322.98.521.2
European Union-14.43.031.98.161.0
Of which: Portugal-28.415.432.320.636.2
USA-28.6-13.526.134.932.1
Other70.2-30.1167.9-45.832.8
Memorandum item:
Total as percent of staff’s estimate of total imports, f.o.b (Table 10)87.887.6132.9100.799.5
Source: IMF, Direction of Trade Statistics.

Data provided by partner countries.

Source: IMF, Direction of Trade Statistics.

Data provided by partner countries.

Table 15.Angola: Composition of Imports, 1999-2003
19992000200120022003
(In millions of U.S. dollars)
Total imports, fob3,1093,0403,1793,7605,480
Consumer goods2,0771,9502,1742,1933,472
Intermediate goods182245304437580
Capital goods8508457011,1301,428
(Percent change)
Total imports, fob50-251846
Consumer goods92-611158
Intermediate goods-2235244433
Capital goods11-1-176126
(In percent of GDP)
Total imports, fob5133363540
Consumer goods3421242025
Intermediate goods33344
Capital goods14981010
(Shares in percent of total)
Consumer goods6764685863
Intermediate goods68101211
Capital goods2728223026
Source: National Bank of Angola.
Source: National Bank of Angola.
Table 16.Angola: Services, 1999–2003
19992000200120022003
(In millions of U.S. dollars)
Services (net)-2,442-2,432-3,316-3,115-3,120
Transport-348-295-379-460-743
Insurance-45-28-65-94-157
Government-401-429-342-125-61
Oil sector-1,542-1,644
Other-1,647-1,680-2,529-886-505
Total receipts153267203207201
Transport4716131716
Insurance16352800
Government00000
Oil sector89
Other90216161190185
Total payments2,5952,6993,5183,3223,321
Transport395311392477759
Insurance61639394157
Government40142934212561
Oil sector1,5501,654
Other1,7381,8962,6901,076690
(Percent change)
Total receipts25.674.7-24.22.1-2.8
Total payments-1.54.030.3-5.60.0
Of which: Oil sector6.7
(In percent of GDP)
Services (net)-39.7-26.6-37.1-28.9-22.6
Total receipts2.52.92.31.91.5
Total payments42.229.539.430.824.0
Of which: Oil sector14.412.0
Source: National Bank of Angola.
Source: National Bank of Angola.
Table 17.Angola: Monetary Survey, December 1999- December 2003
19992000200120022003
Dec.Dec.Dec.Dec.MarJunSepDec
(In billions of kwanzas)
Net foreign assets (banking system)5.830.547.893.5106.7142.7175.3142.3
National Bank of Angola (BNA)2.316.615.515.726.146.973.047.9
Of which: gross reserves2.820.123.422.032.253.379.650.3
Of which: foreign liabilities – short term-0.5-2.7-6.4-3.0-1.4-1.3-1.2-0.8
Commercial banks3.513.932.377.880.695.8102.394.4
Of which: foreign assets4.214.837.385.388.8104.0110.0101.5
Of which: foreign liabilities – short term-0.5-0.5-3.8-6.2-6.8-7.6-6.9-6.4
Net domestic assets-1.8-14.7-6.114.1-0.70.0-21.038.0
Net domestic credit1.2-13.5-1.226.816.519.84.665.0
Credit to government (net)0.7-15.7-9.42.1-15.3-18.3-43.97.0
Claims on government4.01.10.628.425.327.522.842.5
Government deposits-3.3-16.8-10.1-26.4-40.6-45.7-66.7-35.4
Credit to the economy0.52.28.224.731.838.048.558.0
State companies0.10.30.91.43.13.24.94.9
Other items (net)-3.1-1.2-4.9-12.7-17.2-19.8-25.7-27.0
Broad money (M3)3.915.841.7107.6106.0142.7154.3180.3
Money and quasi money (M2)3.915.841.4107.0105.2142.5151.8177.9
Money3.113.330.269.452.670.794.7127.0
Currency outside banks0.73.08.220.914.616.220.835.4
Demand deposits2.410.322.048.638.054.573.991.6
Of which: foreign currency deposits1.88.216.537.426.626.344.457.7
Quasi money0.92.511.237.552.671.957.150.9
Of which: foreign currency deposits0.11.37.328.143.962.748.639.3
Central bank bonds0.00.00.30.60.80.22.52.4
(Cumulative percentage change from beginning of year)
Net foreign assets3,338429579614538752
Net domestic assets-559696-59-332-105-100-249170
Net domestic credit215-1,191-91-2,294-38-26-83143
Net credit to the government134-2,331-40-122-831-972-2,194235
Credit to the economy477309276200295497135
Broad money (M3)533304163158-2334367
Currency outside banks302346177154-30-23-170
Foreign currency deposits1,0843071511725293643
(In units indicated)
Memorandum Items:
Official exchange rate (selling; kwanzas per U.S. dollar)5.616.831.958.768.678.579.379.1
Accumulated inflation (year to date; in percent)32926711311223486983
Velocity (GDP/M2)4.45.84.84.49.87.26.85.8
Gross international reserves (U.S. dollars)4961,1987323754696791,004636
Net international reserves (U.S. dollars)4081,039531324448663988625
Commercial banks’ net foreign assets (U.S. dollars)6288291,0111,3271,1741,2201,2911,194
Sources: National Bank of Angola; and staff estimates.
Sources: National Bank of Angola; and staff estimates.
Table 18.Angola: Interest Rates, December 1999 - December 2003 1/(In percent per annum)
19992000200120022003
Dec.Dec.Dec.Dec.Mar.Jun.Sep.Dec.
Demand deposits10.015.810.210.010.110.110.010.0
Time deposits (days’ maturities)
0-9035.546.056.141.037.820.026.326.7
91-18055.055.050.059.750.927.030.028.0
181-36457.057.0--25.0---
365 +57.0------27.1
Lending rates (days’ maturities)
0-180118.389.697.699.798.4101.4100.593.4
181-364n.d.102.891.7104.6101.6109.198.668.8
365 +n.d.120.0110.0102.886.191.886.375.7
Discount rate120.0150.0150.0150.0150.0150.0150.0150.0
Central bank bills
14-day-112.5------
28-day79.1115.2-102.790.065.2-45.8
63-day-120.1-107.997.078.9-56.1
Source: National Bank of Angola.

Between April 1998 and May 1999, lending rates were stipulated as ceilings and deposit rates as floors. Rates for this period are maxima and minima; thereafter data are averages of representative rates.

Source: National Bank of Angola.

Between April 1998 and May 1999, lending rates were stipulated as ceilings and deposit rates as floors. Rates for this period are maxima and minima; thereafter data are averages of representative rates.

Table 19.Angola: Summary of Government Operations, 1999-2003(In billions of kwanzas)
19992000200120022003
Total revenue8.046.088.9190.8386.9
Oil7.041.170.8146.4290.4
Non-oil1.04.918.144.596.5
Income taxes0.31.45.312.527.7
Taxes on goods and services0.31.65.814.630.1
Taxes on foreign trade0.21.24.410.623.0
Other0.20.72.66.815.7
Total Expenditure14.053.68496.7234.7468.9
Current expenditure8.739.970.1174.1378.1
Personnel0.75.316.053.2129.0
Goods and services4.623.633.692.9163.8
Budgeted
Extrabudgetary (recorded ex post)
Interest payments due1.65.09.815.519.0
Transfers1.86.010.712.566.3
Capital expenditure2.25.612.533.679.0
Quasi fiscal expenditures1.41.91.00.0
Central Bank operational deficit2.73.610.77.5
Discrepancy (unexplained)3.14.18.615.30.0
Overall balance before grants (accrual basis)-6.0-7.7-7.8-43.9-82.0
Change in payment arrears (net)1.823.3-2.336.86.7
Domestic0.520.0-7.532.04.2
External interest1.33.35.24.82.5
Overall balance before grants (cash basis)-4.215.7-10.1-7.1-75.2
Financing4.2-15.710.17.175.2
Onetime oil field concession bonuses2.60.04.313.60.0
Grants0.72.04.70.08.0
External financing (net)0.3-4.3-10.3-24.236.2
Disbursements2.510.525.740.8117.7
Amortization-2.2-14.9-36.1-61.5-101.2
Short-term borrowing, net0.00.00.0-3.50.0
Domestic financing (net)0.6-13.411.517.731.0
Memorandum items:
Primary balance (commitment basis)-4.5-2.72.0-28.4-62.9
Sources: Angolan authorities; and staff estimates.
Sources: Angolan authorities; and staff estimates.
Table 20.Angola: Summary of Government Operations, 1999-2003(In percent of GDP, unless otherwise indicated)
19992000200120022003
Total revenue46.450.245.140.537.5
Oil40.744.935.931.028.2
Non-oil5.65.39.29.49.4
Income taxes1.51.52.72.62.7
Taxes on goods and services1.91.82.93.12.9
Taxes on foreign trade1.31.42.22.22.2
Other0.90.81.31.41.5
Total Expenditure81.558.649.049.845.5
Current expenditure50.643.535.636.936.7
Personnel4.25.88.111.312.5
Goods and services26.925.817.019.715.9
Interest payments due9.05.45.03.31.8
Transfers10.56.55.42.76.4
Capital expenditure12.86.16.47.17.7
Quasi fiscal expenditures1.51.00.20.0
Central Bank operational deficit3.01.82.30.7
Discrepancy (unexplained)18.24.54.33.20.0
Overall balance before grants (accrual basis)-35.2-8.4-4.0-9.3-7.9
Change in payment arrears (net)10.725.4-1.27.80.7
Domestic3.221.8-3.86.80.4
External interest7.53.62.61.00.2
Overall balance before grants (cash basis)-24.417.1-5.1-1.5-7.3
Financing24.4-17.15.11.57.3
Onetime oil field concession bonuses15.20.02.22.90.0
Grants4.02.22.40.00.8
External financing (net)2.0-4.7-5.2-5.13.5
Disbursements14.711.513.18.711.4
Amortization-12.7-16.3-18.3-13.0-9.8
Short-term borrowing, net0.00.00.0-0.70.0
Domestic financing (net)3.3-14.65.83.73.0
Memorandum items:
Primary balance-26.1-2.91.0-6.0-6.1
Sources: Angolan authorities and staff estimates.
Sources: Angolan authorities and staff estimates.
Table 21.Angola: Summary of Government Operations, 1999-2003(In millions of U.S. dollars, unless otherwise indicated)
19992000200120022003
Total revenue2,8524,5864,0294,3675,186
Oil2,5044,0983,2093,3493,892
Non-oil3484888201,0171,294
Income taxes94135241286372
Taxes on goods and services118160263334404
Taxes on foreign trade80123199242308
Other5569117155210
Total Expenditure5,0165,3504,3835,3716,284
Current expenditure3,1123,9723,1803,9845,068
Personnel2585267251,2171,729
Goods and services1,6522,3541,5232,1262,195
Budgeted
Extrabudgetary (recorded ex post)
Interest payments due556496445355255
Transfers645596487286889
Capital expenditure7855615687701,059
Quasi fiscal expenditures13786220
Central Bank operational deficit273161246100
Discrepancy (unexplained)1,1194073883500
Overall balance before grants (accrual basis)-2,164-764-354-1,004-1,098
Change in payment arrears (net)6592,324-10684290
Domestic1951,995-34173156
External interest46432923511134
Overall balance before grants (cash basis)-1,5041,560-460-163-1,008
Financing1,504-1,5604601631,008
Onetime oil field concession bonuses93501953120
Grants2432032130107
External financing (net)125-427-468-553485
Disbursements9041,0491,1679341,578
Amortization-780-1,485-1,638-1,408-1,356
Short-term borrowing, net000-79-79
Domestic financing (net)201-1,336519404416
Memorandum items:
Exchange rate (average)2.810.022.143.764.3
Price of Angola’s oil (in U.S. dollars per barrel)17.427.122.723.730.7
Oil production (millions of barrels)27227327032675
Oil production (millions of U.S. dollars)4,7517,4146,1447,7392,302
Oil revenues/oil production (in percent)52.755.352.243.3169.1
Sources: Angolan authorities; and staff estimates.
Sources: Angolan authorities; and staff estimates.
Table 22.Angola: Functional Distribution of Government Expenditure, 1999-2003
19992000200120022003
(In billions of kwanzas)
General public services and other economic affairs0.53.926.977.968.7
Defense and internal security4.48.017.935.330.0
Education0.31.76.514.031.6
Health0.21.85.59.324.6
Social security, welfare, and housing0.24.96.913.446.0
Energy, agriculture, mining, and transportation0.21.87.212.1105.5
Interest payments (committed)1.65.00.24.919.0
Unclassified6.626.725.567.8143.5
Total14.053.796.7234.7468.9
(In percent of GDP)
General public services and other economic affairs3.04.213.616.56.7
Defense and internal security25.58.79.17.52.9
Education1.51.83.33.03.1
Health1.22.02.82.02.4
Social security, welfare, and housing1.25.33.52.84.5
Energy, agriculture, mining, and transportation1.32.03.72.610.2
Interest payments (committed)9.05.40.11.01.8
Unclassified38.729.113.014.413.9
Total81.558.649.049.845.5
(In millions of U.S. dollars)
General public services and other economic affairs1883881,2201,782921
Defense and internal security1,572793813808402
Education92169295320424
Health73179249213329
Social security, welfare, and housing73486313307617
Energy, agriculture, mining, and transportation801803262771,414
Interest payments (committed)5564969112255
Unclassified2,3812,6601,1581,5521,923
Total5,0165,3504,3835,3716,284
Sources: Angolan authorities; and staff estimates.
Sources: Angolan authorities; and staff estimates.
Table 23.Angola: Population Statistics, 1999-2003 1/
19992000200120022003
(In thousands)
Population12,96013,34013,73114,13314,557
Urban5,6045,7785,9576,1416,339
Rural7,3567,5627,7747,9918,218
(Change in percent)
Population2.92.92.92.93.0
Urban3.13.13.13.13.2
Rural2.82.82.82.82.8
(In percent of total)
Age group
0-1958.058.0
20-4429.529.5
45 +12.512.5
Sources: National Institute of Statistics; and staff estimates.

Population figures are projected from the 1970 census. In mid-1996, a nationwide survey yielded a population estimate of 15.3 million.

Sources: National Institute of Statistics; and staff estimates.

Population figures are projected from the 1970 census. In mid-1996, a nationwide survey yielded a population estimate of 15.3 million.

Table 24.Angola: Public Medium- and Long-term External Debt(In thousands of U.S. dollars)
June
200220032004
Total public debt service7,672,5568,378,9847,892,754
principal3,519,9194,080,8103,691,662
arrears (excluding late interest)4,152,6374,298,1744,201,092
Multilateral creditors304,480333,881334,162
principal302,853331,120331,444
arrears1,6272,7612,718
Of which: World Bank (IDA)265,995290,812291,648
principal265,995289,058290,112
arrears01,7541,536
Of which: African Development Bank4,7232,8792,102
principal4,7082,8632,085
arrears151616
Of which: African Development Fund25,99127,26726,683
Bilateral creditors4,545,1104,575,1824,529,716
principal1,427,3321,484,7781,432,867
arrears3,117,7783,090,4043,096,850
Paris Club2,361,1762,537,0342,509,473
principal551,294519,264488,809
arrears1,809,8812,017,7712,020,664
Non-Paris Club creditor countries2,183,9342,038,1482,020,243
principal876,038965,515944,057
arrears1,307,8971,072,6331,076,186
Of which: Portugal815,424790,148821,693
principal94,7026,27133,372
arrears720,722783,877788,321
Commercial Banks1,868,4202,470,6762,078,978
principal1,478,0871,946,6381,648,571
Oil guaranteed1,146,8121,939,1651,538,037
Government948,2351,490,3421,198,739
Sonangol198,576448,823339,298
Not oil-guaranteed331,2767,473110,534
arrears390,333524,039430,406
Of which: Portugal’s banks531,744521,114530,180
principal174,6317,473110,534
arrears357,112513,642419,646
000
Suppliers954,546999,244949,897
principal311,646318,273278,779
arrears642,900680,971671,118
Of which: Portugal446,394470,125439,981
principal17,75513,89413,477
arrears428,639456,231426,504
Of which: Sonangol226,379105,73578,242
Sources: National Bank of Angola.
Sources: National Bank of Angola.
Table 25.Angola: Summary of Tax System as of June 30, 2003

(all amounts in kwanzas, unless indicated otherwises) 1/





Calculation: these rates are applied as average rates up to the ceiling of the lower bracket and as marginal rates above said ceiling.
TaxNature of TaxExemptions and DeductionsRates
I. Central government
1. Taxes on net income and profits
1.1 Individual
1.1.1 Earned income tax (Imposto sobre o Rendimento do Trabalho)

Law 10/99 of October 29, 1999,

repeals Law 12/92 of June 19, 1992
Tax on labor income in money or in kind, whether contractual or not, fixed or variable, periodic or occasional, regardless of source, place, currency, or form of calculation and payment.Not defined as taxable income: maternity, death, occupational accident and disease, unemployment, and funeral allowances; old age, disability, and survivors’ pensions; retirement bonus; cash shortage allowance; per diem, vacation, and thirteenth-month allowances; representation, travel, relocation, family, and housing rental allowances; severance pay; social security contributions; and remuneration of casual agricultural and domestic employees.(a) and (b)



Monthly Income (In Kz)




Tax Due

(In percent)
Up to 2000

2001-5000

5,001-10,000

10,001-15,000

15,001-20,000

20,001-30,000

30,001-50,000

30,000

Over 50,001
Exempt

2% of excess over 2,000

60 + 4% of excess over 5,000

260 + 6% of excess over 10,000

560 + 8% of excess over 15,000

960 + 10% of excess over 20,000

1,960 + 12.5% of excess over

4,460 + 15% of excess over 50,000
Updated by Exec. Dec. 16/01 of April 12, 2001
(b) Self-employment income Kz 20% (Article 1(3)(b) of the Code)
Exemptions: diplomatic personnel (if bilateral reciprocity applies); staff of international organizations, as established in agreements ratified by the competent Angolan authority; staff of NGOs pursuant to Agreements with prior approval from the Ministry of Finance; handicapped individuals and maimed war veterans with at least 50% incapacity; individuals more than 60 years old and military personnel; Monthly remuneration up to Kz 2,000.
1.1.1.1 EmployeesTax on all remuneration received byemployees, including allowances and bonuses.
b. Income of partners in firms, members of boards of directors or other corporate managing bodies, fiscal boards, general shareholder meeting bureaus, and other corporate bodies.
1.1.1.2 Self-employedTax on income earned during the base year from self-employment in a predominantly scientific, artistic, or technical profession, or from services not subject to another tax.
1.1.2 Capital income tax (Imposto sobre a Aplicação de capitals)Annual tax on income from financial investments indicated in Sections A and B.Exemptions:
Legislative Instrument 36/72 of May 1, 1972, amended by Law 14 /92 of July 3, 1992Section A covers interest on loans, credit contract fees, and late payment fines and charges.For Section A, income and financial institutions cooperatives; interest on installment sales (including late interest); and interest on loans made by life insurance companies to the insured.15 percent regular rate.

5 percent reduced rate on some Section B income.
Section B covers (at the regular rate) interest paid by firms to their partners; compensation paid to firms for suspension of activities and other miscellaneous capital income; and (at the reduced rate) profits distributed by partnerships and corporations; capital income of cooperative members; interest on debentures; profits from limited partnerships and from shares issued with preferential subscription rights; returns of any kind from the assignment of copyrights on literary, artistic, or scientific works, including films, patents, equipment, and know-how in the industrial, commercial, or scientific sector; and any other income arising from the mere investment of capital and not included in Section A.For Section B, profits distributed by holding companies; profits already taxed in other firms where they were generated; interest on demand deposits; interest on certain government debt; and interest on time deposits with the banking system.



Tax incentive: exemption, for a period of three-five years, for profits distributed to partners in firms entitled to the exemption set forth in Art. 14 of the Industrial Tax Code (C.I.I.) for a like period.
1.2 Corporate
1.2.1 Industrial tax (Imposto Industrial) Legislative Instrument 35/72 of April 29, 1972, amended by Law 18/92

of July 3, 1992;

Law 7/96 of April 19,

1996;

Executive Decree

84/99 of July 11,

1999;

Law 5/99 of August 6,

1999
Tax on profits, whether incidental or recurrent, imputable to any commercial or industrial activity not subject to earned income tax; to agricultural, forestry, and cattle-raising activities; to mediation or representation in the execution of contracts of any kind; and to agents of industrial or commercial enterprises doing business in Angola or abroad and having domicile, main offices, or effective management power or a fixed establishment in Angola.Exempt: workers’ production cooperatives; building cooperatives engaged in construction directly or in the lending of money to members for that purpose; consumer, agricultural and cattle-raising cooperatives dealing exclusively with their members; instructional, cultural, leisure, physical education, or sports associations; firms that administer only their own properties; foreign maritime and air transport companies, if reciprocal privileges are given to Angolan companies in their countries; commercial and industrial income subject to the special tax regime; and the National Bank of Angola.35 percent regular rate.



20 percent on income exclusively from agricultural, forestry, and cattle-raising activities.



The Ministry of Finance may authorize a 50 percent reduction of the rates for companies that locate in economically disadvantaged areas and set up industries using local resources, for up to ten years.
Group A –– actual profits: state enterprises; companies; corporations; commercial firms with capital exceeding 35 UCFs2/; credit institutions; insurance institutions; individuals or companies with domicile, main offices, or effective management power in Angola or abroad and with a fixed establishment in Angola; taxpayers with average sales above 1,538 UCFs in the last three years; and Group B taxpayers electing to be included in Group A



Group B—presumptive profits: taxpayers not included in Groups A or C and who engage in occasional industrial or commercial activities.



Group C—estimated potential profits: individual taxpayers meeting all the following conditions: (a) self-employed in a commercial or industrial activity included in the schedule; (b) work alone or with no more than three family members or other persons; (c) do not keep reliable books; (d) own no more than two motor vehicles; and (e) whose current sales do not exceed 269 UCFs.
Tax incentives: allowed for those engaging in new agricultural, forestry or cattle-raising activities for a period of up to ten years, and also to agricultural, forestry, cattle-raising, and fishing activities with annual sales below 269 UCFs



Income from the establishment of new industries in Angola is also eligible for the exemption, as well as income from commercial activities in areas designated as key to economic development, for a period of 3-5 years.



All or part of the profit from activities carried out to implement social assistance, welfare and other social projects
1.2.1.1 Art. 32 – New wording – Law 7/96 of April 19, 1996No. 2 now reads as follows:

“For capital assets totally amortized in the period preceding the entry into force of said decree, the maximum amounts shall be taken into account only if compliance is demonstrated with the procedures established in Article 4(2) as well as the provisions of Article 5(3)(b) of said legislative instrument.”
1.2.1.2 Prepayment of the industrial tax – Law 5/99 of August 6, 1999The provisional payment referred to in Article 78 of the C.I.I. regarding taxpayers in groups A and B is now monthly for the amount representing 10 percent of total sales volume, services rendered, etc. Income received in the preceding month.35 percent
1.2.1.3 Taxation of contract work Law 7/97 of October 10, 1997A special tax regime covering contract and subcontract work and services rendered is applicable to individuals or companies, whether or not they have headquarters, actual control, effective management power, or a fixed establishment in Angola, operating occasionally or permanently, provided they are not subject to the earned income tax.



Taxable base

The taxable base includes (a) in the case of construction, improvement, repair or maintenance of fixed assets×10 percent of the value of the contract, regardless of its form; (b) in all other cases, 15 percent of that amount.
35 percent
1.2.1.2 Revaluation of assets Decree 6/96 of January 26, 1996;



Order 6/99 of January 22, 1999, repealing orders 53/96 of June 3, 1996 and 1/99 of January 8, 1999



Order 7/99 of January 22, 1999;



Order 37/00 of February 3, 2000



Order 38/01 of February 9, 2001
Allows for the revaluation of tangible fixed assets which are and are expected to remain in service, duly recorded in the following accounts: buildings, construction for specific purposes, facilities, manufacturing and other equipment, means of transportation, furniture, fixtures, and other fixed assets. Revaluation will be made by applying the indexation coefficients established by decree of the Minister of Finance. The base and maximum values, procedure, reserve, tax system, rendering useless or destruction and sale of assets, and revaluation, amortization, and inventory tables are specified.Exchange Rate
YearKz/US$IndexCoefficient
1994529.623081.4805515.2174
19955,920.000011.177846.0931
1996209,099.000035.32081.3050
1997272,871.00001.30501.0000
Exchange Rate
YearKz/US$IndexCoefficient
1997272,871.00001.30502.3491
1998641,000.00002.34911.0000
Exchange Rate
YearKz/US$IndexCoefficient
19980.641002.349108.78838
19995.633358.788381.00000
Exchange Rate
YearKz/US$IndexCoefficient
19995.633358.788383.01506
200016.984873.015061.00000
1.2.2 Tax regime for the mining industry

Law 1/92 of January 17, 1992;

Decree Law 4-B/96 of May 31, 1996 (D.R. 22/96 – Supplement)
The mining industry is subject to the following:

(a) industrial income tax on its earnings;

(b) royalties on the value of its mineral resources; and

(c) surface tax.
b) Precious stones and metals Semiprecious stones Metallic minerals Other mineral resources5 percent

4 percent

3 percent

2 percent
c) First and second years Third year Fourth and fifth years1 US$/sq. km.

3 US$/sq. km.

4 US$/sq. km.
1.2.3 Special tax regime for the oil industry
1.2.3.1 Oil income tax (Imposto de produção de petróleo)Tax on the value of the oil, paid by oil companies operating in joint venture with SONANGOL.Enterprises operating under risk contracts may deduct from the tax calculation base, as investment cost, up to 50 percent of the oil produced.a - Cabinda province: 20 percent.



b - Other provinces
Decree 41 356 of November 11, 1957 (B.O.49 of December 4, 1957);

Decree 68/70;

Law 167.13/78 of August 26, 1978
Production tax (1.2.3.1) and transactions tax (1.2.3.3) paid are also deductible from the calculation base.

Basic rate

Surcharge

Total
(In percent)

12 ½

4 1/6

16 2/3
1.2.3.2 Oil income tax (Imposto de rendimento de petróleo)

Decree 41 357 of November 11, 1957 (B.O. 49 of December 4, 1957); Law 13/78 of August 26, 1978
Tax on the profits of oil companies.Tax incentives: the tax base is reduced by a production incentive (in practice, adjusted to production costs) and an investment incentive (a fraction of the historic investment costs).

Basic rate

Surtax



Total
(In percent)

50.00

15.75



65.75
1.2.3.3 Oil transactions tax (Imposto de transações sobre o petróleo)

Decree 5/85 of March 28, 1985;

Decree 29/86 of December 30, 1986
Tax on gross profit, adjusted for tax incentives, arising from production in the province of Cabinda under joint exploration arrangements with SONANGOL.70 percent.
2. Social security contributions Law 18/90 of October 27, 1990; Decree 27/91 of July 5, 1991; Decree 7/99 of May 28, 1999Contributions to social security intended to guarantee the physical subsistence of citizens unable or with diminished capacity to work, and that of their surviving family members upon their death.Employer share: 8 percent of wages



Employee share: 3 percent of wages.
3. Taxes on goods and services
3.1 Sales taxThere is no sales tax.
3.2 Excise tax (Imposto de consumo) Decree 24/89 of May 27, 1989, amended by Decrees 70/91 of May 15, 1992, and 13/93 of April 14, 1993A set of specific and ad valorem taxes on the production and importation of specified goods, such as beer, liquefied gas, industrial alcohol, jewelry, household durable goods, beverages, electronics, automobiles etc.5-30 percent.
3.2.1 Excise tax – Government authorized by legislature: Resolution 6/96 (D.R. 21 of May 24, 1996);



3.2.2 Law 9/99 of October 1, 1999



3.2.3 Decree 75/97 of October 24, 1997 New Excise Tax Schedule
Levied on the following:

(a) the production and importation of goods, including raw materials and semifinished products to be used in production, regardless of their origin;

(b) auctions or sales carried out by customs and other public services;

(c) the use of goods or raw materials other than in the production process and which benefited from tax exemption; and

(d) expansion of the tax base to include telecommunications, hotel and similar services, consumption of water and electricity.
Exemptions:

(a) goods exported by the producer or by legally recognized entities established for this purpose; and

(b) goods manufactured as a result of activities performed through artisanal processes.

Not subject:

(a) unprocessed agricultural and livestock products;

(b) forestry primary products;

(c) unprocessed fishing products; and

(d) unprocessed mineral products.
General rate10 percent
Schedule I
Taxed goods15 – 50 percent
Schedule II
Subsidized rates5 percent
3.2.4 Decree 41/99 of December 10, 1999 approving and regulating the excise tax. Repeals Decrees 24/89 of May 27, 1989, 75/97 of October 24, 1997, 13/93 of April 14, 1993, and 20-M/92 of May 15, 1992.Goods produced in Angola are defined as those which are produced or manufactured in the country or those whose production process was completed in the national territory.
4. Taxes on international transactions
4.1 Import dutiesA tariff code with average ad valorem rates of 12 percent, as well as a number of specific taxes.Exempt: purchases by government, oil companies, armed forces, nonprofit organizations, diplomatic missions and their staff, international organizations, tax-exempt economic projects, seeds and wheat.Generally, the tariff is ad valorem with rates of 100 percent, determined on the basis of the classification of the good as essential, necessary, useful, superfluous, or luxury.
4.2 Export dutiesVarious specific and ad valorem taxes on exported goods.Crude oil and coffee are exempt.Average rate of approximately 4 percent.
5. Other taxes
5.1 Urban real estate tax (Imposto Predial Urbano) Legislative Instrument 4044 of October 13, 1970)Tax on urban real estate. The calculation base is the actual or potential rental value, and the person liable for the tax is the person entitled to the rent.Exempt: buildings (a) occupied by a taxpayer subject to the industrial tax (see 2.2) and paying no rent not exceeding a specified limit; (c) made available free of charge to public services, charitable institutions, schools, museums, and the like; (d) used solely as places of worship; (e) belonging to embassies and consulates, on a reciprocity basis; and (f) belonging to nonprofit professional and economic organizations. Tax incentive: new housing construction may qualify for exemption for a period of 5-15 years, depending on housing policy priorities.30 percent of the actual or potential annual rental value.
5.1.1 Art. 17 and 28 (Amended by Law 6/96 of April 19, 1996)Art. 17



1. When a building or part thereof is rented for a lesser amount than the last annual rental contract, or for less than its rental value if it has not been rented previously, it is deemed not to be rented for tax collection purposes.



4. If the previous rent was outdated, the new rent should be compared with the rent of a building, or part thereof, under a rental agreement, which best serves as a comparator.



Art. 28

3. The rent…may never be less than amount established for government buildings under the current legislation.
5.2 Gift and inheritance tax (Imposto sobre as sucessões e doações)

Legislative Instrument 230 of July 18, 1931,

amended by Law 15/92 of July 3, 1992
A progressive tax on unrequited transfers and on inheritance of money, government securities, stocks, corporate and bank credit instruments, and any movable or immovable property, as well as housing or water rights, perpetual easements, and unrequited waiver of annuities.Exempt: acquisitions by the government, municipal services, charitable institutions, museums, libraries, schools. Also exempt are acquisitions of literary and artistic property and pensions, as well as gifts not exceeding 2 UCFs to descendants, ascendants, or spouses.Schedule of tax rates (in percent):

Up to 11 UCFsAbove 11 UCFs
Between spouses; to descendants or ascendants1015
Between any other persons2030
5.3 Real estate transfer tax (Sisa sobre a transmissão de imobiliários por título oneroso)

Law 230 of July 18, 1931, amended by Law 15/92 of July 3, 1992
A tax on transfers of real property through sale, barter, lapse of rights, etc. (gifts are subject to the gift and inheritance tax; see 5.2), and of assets, inheritance rights, long-term leases (20 years or more), water rights, exploration rights, or perpetual easements.Exempt: acquisitions by the government, municipal services, and charitable institutions, certain court-ordered transfers, eminent domain expropriation, and housing sold by the Government Employees Provident Fund (Cofre da Previdência dos Funcionários Públicos).10 percent of the amount of the transfer.
5.4 Stamp tax (Imposto do selo)

Decree-Law 1647/45 of May 29, 1945;

Decree 7/89 of April 15, 1989;

Decree 18/92 of May 15, 1992; Executive Decree 34/95 of July 21, 1995; and Executive Decree 85/99 of June 11, 1999.
A tax on documents and operations listed in the stamp tax general schedule.Exempt: verbal contracts.
Sample rates:

Capital increases

Commercial leases



Sales contracts





Acknowledgment of debt



Liquidation of Companies Bank draft

Gifts

Loan guarantees



Dividends

Postal money orders
Up to Kz 80

Above Kz 80




0.5 percent

0.7 percent of agreed rent

0.7 percent of agreed rent

0.5 percent

3.0 percent; 100/page

0.5 percent

0.5 percent

0.4 percent

0.3 percent

1.0 percent





0.5 percent

0.4 percent
5.4.1 Art. 114-A Stamp tax schedule (Amended by Law 4/96 of April 12, 1996) (Amended by Decree 31/99 of October 15, 1999 Revised – D.R. 49/99 of December 3, 1999 – new WordingBanking operations: I. Foreign drafts, gold certificates (guias ouro)issued and public funds or negotiable securities sold;

II. Foreign banknotes and coins, traveler’s checks and checks in foreign currency payable to individuals;

III. Interest charged by banking institutions, specifically by discounting treasury bills and notes for loans, for credit accounts being liquidated, and all late payment interest, premiums, and interest on acceptances, bills receivable on behalf of others, domestic drafts issued, or any other transfers, and generally all commissions charged.
Exempt: banking operations between banking institutions, between exchange houses, or between the latter and the former; however, when bills of exchange are used for payment abroad, they will be exempted only when they pertain exclusively to transactions carried out by banking institutions.

However, sales of foreign banknotes and coins by exchange dealers to banks and banking houses, as well as sales of gold bars carried out through the same banks and banking houses, will be subject to the stamp tax referred to in this article, as they are considered analogous to the operations indicated in numerals I and II.
I. 1.5 per mil of the amount involved.





II. 0 percent of the amount involved.





III. 1 percent of the amount involved.
5.4.2 Art. 133 of the schedule (Amended by Law 4/96 of April 12, 1996)Receipts or quitclaims1 percent
5.4.3 Motor Vehicle circulation tax (Taxa de Circulação) D.L. 3837 - Executive Decree 43/97 of October 10, 1997;



5.4.4 Executive Decree 39/99 of January 27, 1999;



5.4.5 Executive Decree 2/00 of January 14, 2000



5.4.6 Executive Decree 6/01 of February 13, 2001
Levied on all motor vehicles in the country or which may be put on the road in the country in future.Exempt: vehicles belonging to government departments, administrative bodies, and economic coordination agencies. Vehicles belonging to foundations and associations in the public interest, as well as others exempted from the payment of any taxes by special legislation. Vehicles with canceled registration
Motorcycles(In kwanzas)
Up to 125 cc engine capacity90
Over 125 cc engine capacity105
Light automobiles
Up to 1,500 cc engine capacity210
Over 1,500 cc up to 1,800cc315
Over 1,800 cc engine capacity420
Heavy automobiles
Up to 10,000 kg tare weight525
Over 10,000 kg tare weight720
II. Provincial governmentsThere are no provincial taxes.
III. MunicipalitiesThere are no municipal taxes.
5.5 Ministry of Finance Executive Decree 66/95 of December 15, 1995



Executive Decree 8/98 of February 6, 1998 amends Executive Decree 66/95 of December 15, 1995



Executive Decree 80/99 of May 22, 1999 repeals Executive Decree 6, 1998
Establishes the amounts and modalities for allocating the receipts of direct and indirect taxes charged and collected to local and state government budgets.



Expands the number of rates and taxes allocated to the local and state government budgets.
Source: Angolan authorities.

According to the authorities there were no changes relative the summary presented in last year’s Article IV report.

“Fiscal correction Units” (UCFs)—through which taxable values are periodically indexed. 1 UCF=Kz 5 (Executive Decree 01/00 of January 7, 2000).

Source: Angolan authorities.

According to the authorities there were no changes relative the summary presented in last year’s Article IV report.

“Fiscal correction Units” (UCFs)—through which taxable values are periodically indexed. 1 UCF=Kz 5 (Executive Decree 01/00 of January 7, 2000).

37Prepared by Marcio Ronci.
38The average maturity of oil-backed loans is 5 years.
39All the debt included here is public or publicly guaranteed and is a liability of either the central government or the national oil company, Sonangol.
40A settlement with Russia was reported to have been concluded in 1997.
41Several empirical studies suggest critical debt thresholds lie between 30-60 percent for the NPV of debt-to-GDP ratio, 100-300 percent for the NPV of debt-to export ratio, and 15-35 percent for debt-service-to-export ratio. Countries with a record of high and persistent debt or default are likely to need to progress to the lower ends of each of these ranges. (See Debt Sustainability in Low-Income Countries-Proposal for an Operational Framework and Policy Implications prepared by Staffs of the Fund and World Bank, February 2004).
42The pre-cutoff bilateral debt arrears with the Paris Club creditors are assumed to be rescheduled on Houston terms (paid in 15 years with 3 years of grace) at end-2005 and the post-cutoff debt paid off in 5 years with one year of grace.
43Other oil producing African countries have on average 7 months of total imports.

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