IMF Staff Concludes Visit to The Republic of Congo

IMF News, December 20, 2017

Source details

Press Release No. 17/516
Mission leader: Mr. Abdoul Aziz Wane.
Visit dates: December 5 to December 20, 2017.
Purpose: discuss the authorities’ economic and financial program and possible financial support by the IMF.
Meetings: Prime Minister Clément Mouamba; Finance Minister Calixte Nganongo; other senior officials; representatives of the diplomatic community, private sector, banks, civil society, and development partners.

Growth of the nonoil economy in 2017: - 9.2 percent.
Key constraints and sources of vulnerability identified:
- Effects of low oil prices.
- Unsustainable debt.
- Significant governance weaknesses.
- Accumulation of government arrears jeopardizing private sector activity.
- Bank liquidity shortages.
- Undermined social services.
- Weak anti-corruption bodies and poor statistics creating enforcement gaps and heightening economic vulnerabilities.
Fiscal stance: sustained fiscal adjustment undertaken since 2015 has reduced macroeconomic imbalances, but imbalances remain large and government buffers are almost depleted.

Restore fiscal sustainability and contribute to regional external stability while increasing support to vulnerable groups, including women.
Restore medium-term debt sustainability; encouraged finalizing the hiring of legal and financial advisors for this purpose.
Immediate governance reforms needed to anchor expectations of positive change in public resource management, including:
- Approve a governance study (government intention to approve in early 2018 welcomed by the mission).
- Establish a set of independent anti-corruption bodies.
- Require declaration of assets for high-level officials.
- Establish and reinforce oversight bodies over state owned enterprises, notably the public oil companies and large investment projects.
- Significantly improve the production and dissemination of economic statistics.

The mission took note of the authorities’ planned measures to restore medium-term debt sustainability.
The IMF team will continue to support the authorities in:
- Restoring debt sustainability.
- Strengthening governance.
- Ensuring adequate program financing.
Process note: once the authorities complete the preparatory work, "a financial arrangement to support Congo’s economic program would be discussed at staff level before being proposed for the IMF Executive Board's consideration."

Mr. Abdoul Aziz Wane: “The authorities and the mission made progress toward the formulation of medium-term macroeconomic and structural policies that could be supported by the IMF. The mission welcomes the draft 2018 budget, which will help restore fiscal sustainability and contribute to regional external stability, while increasing support to vulnerable groups, including women. The mission took also note of the authorities’ planned measures to restore medium-term debt sustainability. It encouraged the authorities to finalize the hiring of legal and financial advisors in that regard.”
Mr. Abdoul Aziz Wane on economic conditions: “Congo’s economy continues to suffer from the effects of low oil prices, unsustainable debt, and significant governance weaknesses. A deeper recession of the nonoil economy in 2017—with growth estimated at - 9.2 percent—is hurting the most vulnerable segments of the population.”

IMF Communications Department — Press Release dated December 20, 2017