Africa-Press – Angola. Angola defended, on Thursday, in New York, the reform of the international financial architecture that meets the expectations and needs of developing countries.
The position was defended by the Permanent Representative of Angola to the United Nations in New York, Francisco José da Cruz, when focusing on the topic “Financing for Development”, in the general debate of the Second Committee of the UN General Assembly.
The diplomat said that the current financial architecture contains structural flaws that have become more evident as the world faces growing challenges in terms of climate change, growing and systemic vulnerabilities, deep inequalities and intrinsically linked and fragile financial markets, highly sensitive to the effects of cross-border propagation.
According to Francisco José da Cruz, developing countries face serious challenges in managing public debt, which are exacerbated by excessively high borrowing costs, hampering their ability to mobilize additional financial resources for the green and sustainable post-pandemic recovery.
Francisco José da Cruz highlighted that Angola is implementing reforms to guarantee higher levels of international reserves, which include the liberalization of the exchange rate and the guarantee of a better business climate, leading to a more diversified economy.
He highlighted the allocation of Special Drawing Rights (SDRs) of approximately one billion dollars in August 2021, having been useful in strengthening its international reserves.
Along this path, he reported that the country was also able to postpone the payment of part of its debt service until this year under the Debt Service Suspension Initiative (DSSI), after successful negotiations to redefine the debt profile with the main large creditors of oil-backed facilities to ease their financial pressures.
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