Republic of Congo secures $87M to strengthen economic recovery
Republic of Congo will receive an immediate disbursement amounting to $87 million from the International Monetary Fund to support its economic recovery plans.
This follows conclusion of the second review of the arrangement under the Extended Credit Facility (ECF), which was approved in January last year.
IMF says the funds will also support the central African nation to maintain macroeconomic stability amid high food inflation and an uncertain global environment.
“The Republic of Congo’s recovery has strengthened, though substantial risks remain amid an uncertain global environment and the spillovers from Russia’s war in Ukraine, which aggravated Congo’s already high food insecurity,” said Bo Li, IMF Deputy Managing Director and Acting Chair.
The lender says Congo continues to implement much needed structural especially in procurement, management of public finances and debt, and publication of a decree on conflict of interests.
However, IMF says four out of five performance criteria related to the fiscal position and debt were not observed, some substantially, but corrective measures have been taken to address the breaches.
“Still high global oil prices and improved oil production, combined with public spending on infrastructure and social assistance, domestic arrears payments, and gradual reform implementation are supporting economic activity. Inflation is expected to decelerate in line with international food prices and regional monetary policy tightening. Key risks to this outlook include an intensification of spillovers from the war in Ukraine, climate shocks, lower oil prices and production, and weak reform implementation,” said IMF.