Angola Cancels Negotiations with IMF

Angola Calls a Halt to IMF Talks, BBC News

Angola has cancelled all negotiations with the International Monetary Fund (IMF), on the grounds that it is quite able to maintain economic stability on its own.

During the past few years, the Angolan economy has gone through massive growth and inflation has been brought under control. Finance Minister Jose Pedro de Morais said the government had successfully implemented its own macro-economic stabilization program while relying exclusively on its own resources.

The finance minister has told the IMF that this wave of prosperity has opened up opportunities with what he called "new partners" and on this basis, consultations with the IMF have been cancelled.

This year alone, Angola expects to produce 585 million barrels of oil, worth over $30 billion - more than the entire Organization for Economic Co-operation and Development aid to the whole of Africa in 2006.

The IMF expects to continue a dialogue with Angola, through which it would give advice to the government. The IMF has, for several years, harbored misgivings about how the country accounts for its oil revenues.

It remains unclear whether the decision not to pursue an IMF agreement will affect Angola's estimated debt of $2.3 billion to Paris Club creditors.

Question: Was this a smart move for Angola?