IMF says transparency key to $283 million deal with Equatorial Guinea

By AT editor - 27 December 2019 at 6:51 pm
IMF says transparency key to $283 million deal with Equatorial Guinea

The president of Equatorial Guinea will need to declare his assets in keeping with requirements set by the International Monetary Fund, in order for the West African nation to receive a US$283 million bailout agreed to earlier this month.

That’s according to a Bloomberg interview with Lisandro Abrego, the IMF’s mission chief for Equatorial Guinea, seeking to confirm that President Teodoro Obiang Nguema, the 40-year leader of the oil-rich nation, will have to comply with provisions geared toward transparency and good governance.

The IMF agreement includes anti-corruption measures that require all senior officials – presumably including Teodorin Nguema Obiang, the vice president and Obiang’s son – to cooperate. The younger Obiang has been convicted or implicated in corruption cases in France, the United States and Brazil.

The IMF also requires full audits of the country’s oil and gas entities, including GEPetrol and SONAGAS.

“In recent years, the Equatoguinean economy has been impacted by a sharp decline in oil prices and a secular decline in hydrocarbon output, which led to large macroeconomic imbalances and negative economic growth,” said Tao Zhang, the deputy managing director and acting chairman of the IMF executive board approving the funds.

“The economy has also been affected by longstanding governance and corruption problems,” he added. “While the authorities have taken steps to address these challenges, a more comprehensive approach is needed to tackle them effectively and achieve sustainable and inclusive growth.”

The IMF says its assessment process in Equatorial Guinea began in 2017 and took two and a half years to complete. Details on the agreement provided by Abrego are available at this IMF link.

 

 

 

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