(4 Minutes read)
- The IMF staff and the authorities have reached a staff-level agreement on the first review under the three-year Extended Credit Facility (ECF) arrangement for Democratic Republic of Congo
- The IMF team pitched for boosting public investment and social spending in DRC. It also told the DRC officials to continue with its efforts to raise revenues, reducing non-priority spending, and ensuring efficient and transparent use of public funds, including the SDR allocation
- The other suggestions of the IMF was to remain committed to building reserves to guard against external shocks. Improvement of business confidence, ensuring greater transparency including in the mining sector.
The IMF staff and the authorities have reached a staff-level agreement on the first review under the three-year Extended Credit Facility (ECF) arrangement for Democratic Republic of Congo The IMF team pitched for boosting public investment and social spending in DRC. It also told the DRC officials to continue with its efforts to raise revenues, reducing non-priority spending, and ensuring efficient and transparent use of public funds, including the SDR allocation. The other suggestion of the IMF was to remain committed to building reserves to guard against external shocks. Improvement of business confidence, ensuring greater transparency including in the mining sector.
An International Monetary (IMF) team, led by Ms. Mercedes Vera Martin had conducted virtual discussions and meetings with the authorities in Kinshasa between October 20 and October 27. It was the first review under the three-year arrangement under the Extended Credit Facility (ECF).
Ms. Vera Martin at the end of the review meeting said that the Democratic Republic of Congo’s authorities and the IMF team reached a staff-level agreement on the conclusion of the First Review under the ECF arrangement. It will be subjected
The IMF team felt that despite the persistence of the COVID-19 pandemic, the DRC’s economy was recovering. The growth for 21-22 has been revised upward to 5.4 percent and 6.2 percent respectively, supported by higher-than-envisaged mining production and a rebound in non-extractive growth. Inflation has hovered around 5 percent. Better-than-envisaged external developments, supported by high commodity prices, has allowed for a significant increase in gross international reserves to US$3.3 billion in mid-October 2021, an increase from US $0.8 billion at end-2020. This was on account of a more proactive foreign exchange purchases by the central bank and the end-August general SDR allocation.
The proposed 2022 budget also came up for discussion with the IMF officials. The budget, the IMF team felt should envisage scaling up public investment. This should be financed to some extent by the partial use of the SDR allocation. It also called for better governance and transparent structures to root out corruption.
