Karachi, The International Monetary Fund (IMF) Executive Board has completed its fourth review under the Extended Credit Facility (ECF) for the Republic of Congo, enabling an immediate disbursement of approximately US$43 million. This decision, made today in Washington, DC, marks a significant step in the country’s ongoing economic recovery efforts amid inflationary pressures and global uncertainties.
According to International Monetary Fund, the completion of this review under the ECF, initially approved on January 21, 2022, brings the total disbursements to the Republic of Congo to about US$ 259.2 million. These funds are aimed at supporting the Congolese government’s development policies, maintaining macroeconomic stability, and strengthening economic recovery in the face of challenges such as high inflation, including food, volatile oil prices, and tightening financial conditions.
The IMF review noted that the Republic of Congo’s program performance was largely satisfactory, though it experienced delays in structural reforms. The authorities have taken significant corrective actions in response to breaches of performance criteria related to fiscal positions and debt service management. Efforts are underway to improve the execution of social spending, with a focus on transparency, fiscal revenue enhancement, and efficient public investment management.
The IMF stressed the importance of continued fiscal policy adjustments aimed at reducing vulnerabilities and enhancing debt sustainability. Commendable efforts include progress in fuel subsidy reform and a commitment to fiscal consolidation in 2024. These measures are expected to free up resources from reduced oil-related transfers and improve domestic revenue mobilization, thereby accelerating development spending and increasing social expenditures for vulnerable groups.
Moreover, the IMF emphasized the need for sustained structural reform implementation. Improving public financial and debt management, alongside broader governance reforms including anti-corruption and transparency measures, is seen as crucial for fostering a more conducive business environment.
The ECF-supported program is designed to help the Republic of Congo reduce fragilities and embark on a path of higher, more resilient, and inclusive growth. It also contributes to regional efforts to preserve external stability within the Central African Economic and Monetary Union (CEMAC).
Mr. Kenji Okamura, Deputy Managing Director and Acting Chair of the IMF Executive Board, highlighted the Republic of Congo’s recovery, bolstered by higher oil revenues and robust non-oil growth. However, he also pointed out substantial risks, including regional conflicts, climate shocks, oil price volatility, and slower reform implementation. Okamura encouraged the authorities to continue fiscal consolidation, enhance social and development spending, and strengthen public finance and debt management. He also underscored the importance of diversifying the economy through structural and governance reforms, improving transparency, and adapting to climate change risks.