Press Release No. 07/242

Statement by the IMF First Deputy Managing Director Lipsky on the Democratic Republic of the Congo (DRC)

October 25, 2007

Mr. Lipsky, The First Deputy Managing Director of the International Monetary Fund (IMF), issued the following statement today on the Democratic Republic of the Congo:

"It was a great pleasure to welcome President Kabila to the IMF Headquarters earlier today. Our discussions focused on policies that the DRC government is pursuing under a 2007 Staff-Monitored Program (SMP) and those for 2008 and the medium term which provide the basis for commencing discussions on a new three-year arrangement under the Poverty Reduction and Growth Facility (PRGF). Despite difficult post-conflict conditions, the first democratically elected government in nearly 50 years has made impressive progress in further stabilizing the economy and restarting key reforms. Looking ahead, the authorities will need to build on this track record and press ahead with policies to deepen macroeconomic stability, strengthen economic growth, and effectively address poverty.

Preserving recent gains in macroeconomic stability and reaching understandings on a 2008 budget would pave the way for discussions on a new PRGF and for establishing a track record toward reaching the HIPC completion point. The Fund staff has worked closely with the authorities to come to understandings on the requisite policies. In particular, there is broad understanding on the fiscal stance for 2008. We are continuing discussions on the details of the budget to support that stance and to provide resources for pro-poor spending. I am encouraged by the authorities' commitment to implement sound macroeconomic policies and press forward with key structural reforms."