Angola, Africa’s largest crude producer after Nigeria, is facing extreme austerity measures as it deals with the fallout of low oil prices, reported Bloomberg.
This fiscal year’s budget has already been cut by 25%, with further reductions expected. The extreme belt-tightening has come as the Kwanza, the national currency, has dropped to an all time low, reported CNBC.
The current president, Jose Eduardo dos Santos, has been forced to seek loans from foreign banks such as Goldman Sachs to put some relief on the exchange rate.
According to the Financial Times, the country is seeking some $1b in relief. Angola is the third largest economy in Africa.