Congo-Brazzaville: agreement with the IMF which awaits the approval of the Board
Brazzaville in 2020. (Photo illustration) SAMIR TOUNSI / AFP
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Brazzaville is in the process of securing a new agreement with the International Monetary Fund (IMF).
The text, drawn up in recent months, provides for a three-year program under the Extended Credit Facility.
The Republic of Congo would receive support of $ 456 million in exchange for specific commitments on good governance and the fight against corruption.
The deal must now be approved by the IMF's executive board.
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The deal was also made possible by the renegotiation of Congo's debt to China and Swiss trader Trafigura.
Thus, the 2019 agreement is now buried and it is indeed a new credit facility that Brazzaville is in the process of obtaining from the IMF.
It is a three-year program weighing $ 456 million that goes hand in hand with the implementation of a number of reforms negotiated in recent months.
The IMF expects progress in terms of governance, transparency and the fight against corruption.
A source within the institution emphasizes that although higher than 70% of GDP, the debt (it should reach 94% by the end of the year) is considered sustainable, thanks to the moratorium on interest decided by the G20 for help poor countries in the lowlands of the Covid-19 pandemic.
In addition, the debt restructuring agreements signed by the Congo with China and the trader Trafigura have worked in its favor, even if it remains in Brazzaville to reach an agreement with the other trader, Glencore, which has a debt of 850 million dollars on Congolese oil.
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The agreement must now be approved in December by the IMF's board of directors and it is only then that all the conditions set will be written in black and white.
Brazzaville, which had not respected those of the 2019 agreement, had only received 10% of the sums promised.
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