The Republic of Congo may soon be eligible for badly needed support from the International Monetary Fund.An IMF mission which visited Brazzaville during May reached an agreement, ad referendum, on a program that could be supported by an arrangement under the Extended Credit Facility (ECF). The ECF program is expected to support the Republic of Congo to restore macroeconomic stability and achieve higher and more inclusive growth. It also aims at restoring debt sustainability, improving governance, cutting down corruption, protecting vulnerable groups. The programme will also help the country to achieve greater transparency and efficiency in the management of public resources, especially in the oil sector. The Programme reportedly will contribute to the regional strategy of the Central African Economic and Monetary Union (CEMAC).The country is projected to achieve an economic recovery with growth that could exceed 5 percent in 2019. The economic growth was supported by expansion in oil output and a gradual recovery in non-oil growth led by agriculture, forestry and transportation. Low Inflation, strong expansion in oil exports, prudent execution of the 2018 budget, etc improved the external current account and overall fiscal position.
Congo has been under financial distress since 2014 and this new development could likely give Brazzaville the breather it needs. IMF puts stiff conditions on countries to follow a certain pattern of the reform process if they want to avail credit facilities. Important among them is the repaying capacity of the country availing funds. It also lays down certain financial prudence to followed by the borrower country to improve its economic performance. China has agreed to restructure debts owed by the Central African nation.
