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Viewing cable 07LUANDA38, Angola: Ambassador Briefs IMF Official on IMF Agreement,

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Reference ID Created Released Classification Origin
07LUANDA38 2007-01-17 11:25 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Luanda
VZCZCXYZ0000
RR RUEHWEB

DE RUEHLU #0038 0171125
ZNR UUUUU ZZH
R 171125Z JAN 07
FM AMEMBASSY LUANDA
TO RUEHC/SECSTATE WASHDC 3605
RUEAWJA/DEPT OF JUSTICE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHSE/US SECRET SERVICE WASHINGTON DC
UNCLAS LUANDA 000038 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EB/IFA/OMA AND AF/S 
 
E.O. 12958: N/A 
TAGS: EFIN ECON EAID AO
SUBJECT:  Angola:  Ambassador Briefs IMF Official on IMF Agreement, 
Elections 
 
REF: A) 06 Paris 7835; B) LUANDA 1261 
 
1.  (SBU) Summary:  Meeting with IMF Africa Department Senior 
Advisor Robert J. Corker on January 13, 2007 in Luanda, Ambassador 
Efird reviewed the likelihood of and the timetable for the GRA to 
conclude a Stand-by Agreement with the IMF, noting as well the 
serious steps taken by the GRA to liquidate 2.4 billion of its Paris 
Club debt in 2007.  Corker was non-committal on the possibility of 
the IMF's placing a Resident Representative in Angola.  Finally, the 
Ambassador provided an update on Angola's voter registration process 
-- scheduled to continue through 2007 -- with election at the 
earliest in 2008.  End Summary. 
 
IMF Stand-By Agreement Looking More Likely 
------------------------------------- 
 
2.  (SBU)  On January 13, 2007, following a USAID and  National Bank 
of Angola (BNA) workshop on monetary policy (septel), Ambassador 
Efird met with International Monetary Fund (IMF) Africa Department 
Senior Advisor Robert J. Corker.  The Ambassador told Corker that in 
December, she met with Manuel Junior, President Dos Santos' senior 
advisor on economic matters, who indicated that he was preparing a 
brief for Dos Santos in favor of a Stand-by Agreement (SBA) with the 
IMF.  However, the Ambassador believed the GRA has probably not 
taken any further action since then because of the prolonged 
Christmas holidays.  Corker recalled that the GRA had told the IMF 
in December that it would get back to the IMF at the end of January. 
 He added that he understood the Angolan Council of Ministers would 
need to meet and review the issue before the GRA could commit to an 
agreement. Corker noted that in order to make "a go" of the SBA, the 
IMF would need to hear by January because of the IMF's internal 
processes.  Corker and the Ambassador also discussed the possibility 
of the IMF's appointing  a resident representative (Resrep), as the 
government of Angola  requested during the last IMF technical 
discussions here.  The Ambassador stressed the importance of the 
IMF's having someone in Angola to maintain more direct and regular 
contact with GRA officials.  Corker did not commit to the IMF's 
placing a resrep in Angola, saying only that the IMF has a small 
number of resident representatives, some of whom are accredited to 
more than one country. He added that if Angola commits to a SBA 
agreement a permanent representative would probably be assigned. 
 
Angola and the Paris Club 
------------------------- 
 
3. (SBU) The Ambassador mentioned Angola's plans to pay more of its 
Paris Club debt in 2007 and Corker confirmed that Minister of 
Finance Pedro de Morias had sent the IMF a letter promising to pay a 
total of USD 2.4 billion to Paris Club creditors this year. 
Ambassador Efird added she had heard that if Angola signs an SBA, 
the Paris Club may forgive Angola its USD 1.8 billion in late 
interest (Reftel A). 
 
Angola's Elections Timetable 
---------------------------- 
 
4.  (SBU)  Corker asked about the timing of Angola's elections had 
been delayed.  The Ambassador explained that Angola's voter 
registration process is on schedule and will continue until the end 
of the 2007.  (Note: The formal registration period ends in June 
2007, but follow-on verification processes, etc. will require 
additional months.)  Only after the registration process is complete 
can the GRA set a date for elections, and that should be by August 
2008 at the latest.  The Ambassador also referred to some 
innovations the electoral commission introduced during the process, 
for example: constituting boards of prominent local citizens to 
identify registrants who do not have documents and permission for 
NGOs and embassies to observe the registration process, although the 
electoral law provided only for political party observers. The IMF 
representative noted that from the funds perspective it would be 
better not to have elections during the SBA program year.  From this 
standpoint, elections only in 2008 was a positive development. 
 
5.  (SBU) Comment.  All indications to date are that the IMF and the 
GRA both wish for Angola to move forward on an SBA, and the 
importance both attach to such an agreement.  The IMF's need to have 
an agreement by the end of January in order to perform its 
preparatory work may be too short a deadline for the GRA, but as we 
have seen in other cases, namely approval for the Capetown 
Convention, when the GRA makes up its mind to do something it can 
move very quickly. The IMF continues to brief carefully the US 
Embassy in Luanda and to look for information and support for its 
efforts at achieving an agreement. 
EFIRD