{
  "title": "Press Release: IMF Executive Board Approves US$551 Million PRGF Arrangement for the Democratic Republic of the Congo and US$73 Million in Interim HIPC Assistance",
  "publication": "IMF News, December 11, 2009",
  "sourceUrl": "https://www.imf.org/en/news/articles/2015/09/14/01/49/pr09455",
  "canonical": "https://www.imf.org/en/news/articles/2015/09/14/01/49/pr09455",
  "overlayPath": "/en/news/articles/2015/09/14/01/49/pr09455/index.md",
  "summary": "Approved a three-year PRGF arrangement for the Democratic Republic of the Congo (DRC) of SDR 346.45 million (about US$551.45 million).",
  "publishDate": "2009-12-11",
  "sections": [
    {
      "heading": "IMF approvals and financing",
      "content": "- Approved a three-year PRGF arrangement for the Democratic Republic of the Congo (DRC) of SDR 346.45 million (about US$551.45 million).\n- Approved additional interim HIPC assistance of SDR 45.66 million (about US$72.68 million) under the enhanced HIPC Initiative to reduce the DRC’s debt service payments to the IMF.\n- Satisfactory completion of the first review of the PRGF-supported economic program is a key requirement for the DRC to reach the HIPC completion point and benefit from the Multilateral Debt Relief Initiative (MDRI)."
    },
    {
      "heading": "Program objectives and quantitative targets (three years to June 2012)",
      "content": "- Average real GDP growth target: 5.5 percent.\n- End-period inflation target: 9 percent by 2012.\n- Gross reserves target: equivalent to 10 weeks of nonaid imports by 2012.\n- External current account deficit (including grants) target: limited to an average of 25 percent of GDP."
    },
    {
      "heading": "Recent economic developments (summary)",
      "content": "- Socioeconomic conditions remain dire after a decade-long conflict; per capita income and human development indicators among the lowest in Africa.\n- Projected economic growth in 2009: 2.7 percent.\n- The Congolese franc depreciated by 35 percent against the U.S. dollar between December 2008 and September 2009.\n- Reserves declined to US$30 million in February 2009 before rising to US$894 million at end-September 2009 following emergency assistance and SDR allocations (SDR 424.5 million).\n- DRC is in debt distress with an external debt stock of about US$13.1 billion and debt service amounting to about one-fourth of total expenditure.\n- At end-2008, publicly contracted or guaranteed external debt was an estimated 93 percent of GDP, 150 percent of exports, and 502 percent of government revenue, excluding foreign aid.\n- IMF staff received financing assurances in November 2009 regarding rescheduling of DRC’s Paris Club debts."
    },
    {
      "heading": "Key policy priorities and reforms",
      "content": "- Fiscal policy: bolster domestic revenue, strengthen expenditure management, implement a prudent wage policy, avoid recourse to bank financing over the medium term.\n- Monetary policy: focus on reducing inflation; improve liquidity forecasting, strengthen coordination with the Treasury, complete restructuring and recapitalization of the central bank to enhance credibility and independence, and strengthen central bank supervision of commercial banks.\n- Exchange rate policy: maintain a flexible exchange rate; limit foreign exchange intervention to smoothing short-term volatility and achieving gross official reserve targets.\n- Structural reforms: public enterprise reform, improving governance, streamlining the business regulatory environment, protecting foreign investment, and improving transparency in natural resource management.\n- Debt management: meet enhanced HIPC requirements and triggers to reach the completion point and receive MDRI relief as early as possible; continued highly concessional donor assistance required."
    },
    {
      "heading": "Program structural reform focus areas",
      "content": "- Improving domestic revenue mobilization by expanding the tax base and improving its management.\n- Strengthening public financial management through improved budget preparation, execution and accountability.\n- Reforming the central bank to restore independence of the Banque Centrale du Congo and strengthen supervisory capacity with IMF technical assistance.\n- Developing the private sector, including reform of public enterprises and streamlining government regulations.\n- Improving transparency in natural resource management."
    },
    {
      "heading": "Selected economic and financial indicators (highlights from Table 1)",
      "content": "- Real GDP (annual change): 2007: 6.3; 2008: 6.2; 2009 (Prel. Est.): 2.7; 2010 (Projections): 5.4; 2011: 7.3; 2012: 6.8; 2013: 8.1; 2014: 7.0.\n- Consumer prices, period average: 2007: 16.7; 2008: 18.0; 2009: 45.0; 2010: 24.7; 2011: 13.5; 2012: 10.5; 2013: 9.0; 2014: 8.8.\n- Consumer prices, end-of-period: 2007: 10.0; 2008: 27.6; 2009: 48.7; 2010: 15.0; 2011: 12.0; 2012: 8.5.\n- Exports, f.o.b. (U.S. Dollars, annual percent change): 2007: 109.6; 2008: 7.2; 2009: -42.5; 2010: 18.3; 2011: 27.8; 2012: 13.2; 2013: 17.2; 2014: 16.4.\n- Imports, f.o.b. (U.S. Dollars, annual percent change): 2007: 81.8; 2008: -21.7; 2009: 21.6; 2010: 26.1; 2011: 0.5; 2012: 4.5.\n- Broad money (annual change): 2007: 49.5; 2008: 55.7; 2009: 33.8; 2010: 27.0.\n- Total government revenue (percent of GDP): 2007: 14.8; 2008: 18.5; 2009: 17.9; 2010: 19.0; 2011: 20.8; 2012: 21.2.\n- Total government expenditure (percent of GDP): 2007: 18.8; 2008: 22.7; 2009: 29.1; 2010: 36.2; 2011: 35.3; 2012: 34.6; 2013: 32.1.\n- Overall fiscal balance (payment order basis, incl. grants, percent of GDP): 2007: -2.5; 2008: -2.3; 2009: -3.2; 2010: -12.2; 2011: -10.1; 2012: -8.7; 2013: -6.4; 2014: -5.3.\n- Gross national saving (percent of GDP): 2007: 5.8; 2008: 5.6; 2009: 7.4; 2010: 11.2; 2011: 14.4.\n- Investment (percent of GDP): 2007: 22.0; 2008: 33.5; 2009: 37.3; 2010: 32.5; 2011: 30.0.\n- Exports of goods and services (percent of GDP): 2007: 65.5; 2008: 61.3; 2009: 41.8; 2010: 42.7; 2011: 49.0; 2012: 50.8.\n- Imports of goods and services (percent of GDP): 2007: 68.9; 2008: 76.4; 2009: 66.4; 2010: 71.1; 2011: 81.1; 2012: 76.0.\n- Current account balance, incl. transfers (percent of GDP): 2007: -1.5; 2008: -15.9; 2009: -16.4; 2010: -27.7; 2011: -31.7; 2012: -25.1.\n- Gross official reserves (weeks of nonaid-related imports): 2007: 9.9; 2008: 8.7; 2009: 9.2; 2010: 11.5.\n- External public debt, total stock including IMF (Millions of U.S. dollars): 2007: 13,425; 2008: 13,149; 2009: 12,785; 2010: 4,329; 2011: 5,386; 2012: 6,434; 2013: 6,882; 2014: 7,761.\n- Net present value (NPV) of debt (Millions of U.S. dollars): 2007: 10,820; 2008: 10,729; 2009: 10,603; 2010: 4,106; 2011: 5,255; 2012: 6,248; 2013: 6,599; 2014: 7,326.\n- NPV of debt (percent of exports of goods and services): 2007: 264.5; 2008: 189.7; 2009: 175.5; 2010: 73.8; 2011: 98.9; 2012: 100.8; 2013: 90.9; 2014: 88.0.\n- Scheduled debt service (Millions of U.S. dollars): 2007: 739.6; 2008: 891.2; 2009: 815.5; 2010: 252.1; 2011: 346.6; 2012: 430.4; 2013: 355.7; 2014: 350.8.\n- Exchange rate (Congo franc per U.S. dollar), period average: 2007: 516.0; 2008: 563; end-of-period: 2007: 503.0; 2008: 639.\n- Memorandum: Nominal GDP (billions of Congo francs): 2007: 5,148; 2008: 6,526; 2009: 8,729; 2010: 11,361; 2011: 13,746; 2012: 16,117; 2013: 18,869; 2014: 21,877."
    },
    {
      "heading": "Institutional and historical notes",
      "content": "- DRC became an IMF member on September 28, 1963; quota in the Fund: SDR 533 million.\n- Previous PRGF arrangement (approved June 2002): SDR 580 million (US$924 million), almost fully drawn (SDR 553.47 million) and expired March 2006 without completion of the sixth review.\n- On March 12, 2009, the Executive Board approved a disbursement equivalent to SDR 133.25 million (about US$212 million) under the Rapid-Access Component of the Exogenous Shocks Facility (RAC-ESF).\n\nPress Release No. 09/455, December 11, 2009.\n\n---\n\n\n References\n\n- Democratic Republic of the Congo and the IMF\n- Press Releases\n- PRESS CENTER\n- Heavily Indebted Poor Countries (HIPC) Initiative\n- Multilateral Debt Relief Initiative (MDRI)\n- Poverty Reduction and Growth Strategy (PRGS)\n- http://www.imf.org/external/mmedia/view.asp?eventID=1696\n- http://www.imf.org/external/mmedia/view.asp?eventID=1673\n- http://www.imf.org/external/mmedia/view.asp?eventID=1674\n- IMF’s general and special SDR allocations\n- Press Release No. 02/27\n- Press Release No. 09/74\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr09455"
    }
  ],
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    "[Markdown version](/en/news/articles/2015/09/14/01/49/pr09455/index.md)",
    "[Structured JSON version](/en/news/articles/2015/09/14/01/49/pr09455/index.json)",
    "[Bundle manifest](/en/news/articles/2015/09/14/01/49/pr09455/bundle-manifest.json)",
    "Published: December 11, 2009",
    "Approved a three-year PRGF arrangement for the Democratic Republic of the Congo (DRC) of SDR 346.45 million (about US$551.45 million).",
    "Approved additional interim HIPC assistance of SDR 45.66 million (about US$72.68 million) under the enhanced HIPC Initiative to reduce the DRC’s debt service payments to the IMF.",
    "Satisfactory completion of the first review of the PRGF-supported economic program is a key requirement for the DRC to reach the HIPC completion point and benefit from the Multilateral Debt Relief Initiative (MDRI).",
    "Average real GDP growth target: 5.5 percent.",
    "End-period inflation target: 9 percent by 2012.",
    "Gross reserves target: equivalent to 10 weeks of nonaid imports by 2012.",
    "External current account deficit (including grants) target: limited to an average of 25 percent of GDP.",
    "Socioeconomic conditions remain dire after a decade-long conflict; per capita income and human development indicators among the lowest in Africa.",
    "Projected economic growth in 2009: 2.7 percent.",
    "The Congolese franc depreciated by 35 percent against the U.S. dollar between December 2008 and September 2009.",
    "Reserves declined to US$30 million in February 2009 before rising to US$894 million at end-September 2009 following emergency assistance and SDR allocations (SDR 424.5 million).",
    "DRC is in debt distress with an external debt stock of about US$13.1 billion and debt service amounting to about one-fourth of total expenditure.",
    "At end-2008, publicly contracted or guaranteed external debt was an estimated 93 percent of GDP, 150 percent of exports, and 502 percent of government revenue, excluding foreign aid.",
    "IMF staff received financing assurances in November 2009 regarding rescheduling of DRC’s Paris Club debts.",
    "Fiscal policy: bolster domestic revenue, strengthen expenditure management, implement a prudent wage policy, avoid recourse to bank financing over the medium term.",
    "Monetary policy: focus on reducing inflation; improve liquidity forecasting, strengthen coordination with the Treasury, complete restructuring and recapitalization of the central bank to enhance credibility and independence, and strengthen central bank supervision of commercial banks.",
    "Exchange rate policy: maintain a flexible exchange rate; limit foreign exchange intervention to smoothing short-term volatility and achieving gross official reserve targets.",
    "Structural reforms: public enterprise reform, improving governance, streamlining the business regulatory environment, protecting foreign investment, and improving transparency in natural resource management.",
    "Debt management: meet enhanced HIPC requirements and triggers to reach the completion point and receive MDRI relief as early as possible; continued highly concessional donor assistance required.",
    "Improving domestic revenue mobilization by expanding the tax base and improving its management.",
    "Strengthening public financial management through improved budget preparation, execution and accountability.",
    "Reforming the central bank to restore independence of the Banque Centrale du Congo and strengthen supervisory capacity with IMF technical assistance.",
    "Developing the private sector, including reform of public enterprises and streamlining government regulations.",
    "Improving transparency in natural resource management.",
    "Real GDP (annual change): 2007: 6.3; 2008: 6.2; 2009 (Prel. Est.): 2.7; 2010 (Projections): 5.4; 2011: 7.3; 2012: 6.8; 2013: 8.1; 2014: 7.0.",
    "Consumer prices, period average: 2007: 16.7; 2008: 18.0; 2009: 45.0; 2010: 24.7; 2011: 13.5; 2012: 10.5; 2013: 9.0; 2014: 8.8.",
    "Consumer prices, end-of-period: 2007: 10.0; 2008: 27.6; 2009: 48.7; 2010: 15.0; 2011: 12.0; 2012: 8.5.",
    "Exports, f.o.b. (U.S. Dollars, annual percent change): 2007: 109.6; 2008: 7.2; 2009: -42.5; 2010: 18.3; 2011: 27.8; 2012: 13.2; 2013: 17.2; 2014: 16.4.",
    "Imports, f.o.b. (U.S. Dollars, annual percent change): 2007: 81.8; 2008: -21.7; 2009: 21.6; 2010: 26.1; 2011: 0.5; 2012: 4.5.",
    "Broad money (annual change): 2007: 49.5; 2008: 55.7; 2009: 33.8; 2010: 27.0.",
    "Total government revenue (percent of GDP): 2007: 14.8; 2008: 18.5; 2009: 17.9; 2010: 19.0; 2011: 20.8; 2012: 21.2.",
    "Total government expenditure (percent of GDP): 2007: 18.8; 2008: 22.7; 2009: 29.1; 2010: 36.2; 2011: 35.3; 2012: 34.6; 2013: 32.1.",
    "Overall fiscal balance (payment order basis, incl. grants, percent of GDP): 2007: -2.5; 2008: -2.3; 2009: -3.2; 2010: -12.2; 2011: -10.1; 2012: -8.7; 2013: -6.4; 2014: -5.3.",
    "Gross national saving (percent of GDP): 2007: 5.8; 2008: 5.6; 2009: 7.4; 2010: 11.2; 2011: 14.4.",
    "Investment (percent of GDP): 2007: 22.0; 2008: 33.5; 2009: 37.3; 2010: 32.5; 2011: 30.0.",
    "Exports of goods and services (percent of GDP): 2007: 65.5; 2008: 61.3; 2009: 41.8; 2010: 42.7; 2011: 49.0; 2012: 50.8.",
    "Imports of goods and services (percent of GDP): 2007: 68.9; 2008: 76.4; 2009: 66.4; 2010: 71.1; 2011: 81.1; 2012: 76.0.",
    "Current account balance, incl. transfers (percent of GDP): 2007: -1.5; 2008: -15.9; 2009: -16.4; 2010: -27.7; 2011: -31.7; 2012: -25.1.",
    "Gross official reserves (weeks of nonaid-related imports): 2007: 9.9; 2008: 8.7; 2009: 9.2; 2010: 11.5.",
    "External public debt, total stock including IMF (Millions of U.S. dollars): 2007: 13,425; 2008: 13,149; 2009: 12,785; 2010: 4,329; 2011: 5,386; 2012: 6,434; 2013: 6,882; 2014: 7,761.",
    "Net present value (NPV) of debt (Millions of U.S. dollars): 2007: 10,820; 2008: 10,729; 2009: 10,603; 2010: 4,106; 2011: 5,255; 2012: 6,248; 2013: 6,599; 2014: 7,326.",
    "NPV of debt (percent of exports of goods and services): 2007: 264.5; 2008: 189.7; 2009: 175.5; 2010: 73.8; 2011: 98.9; 2012: 100.8; 2013: 90.9; 2014: 88.0.",
    "Scheduled debt service (Millions of U.S. dollars): 2007: 739.6; 2008: 891.2; 2009: 815.5; 2010: 252.1; 2011: 346.6; 2012: 430.4; 2013: 355.7; 2014: 350.8.",
    "Exchange rate (Congo franc per U.S. dollar), period average: 2007: 516.0; 2008: 563; end-of-period: 2007: 503.0; 2008: 639.",
    "Memorandum: Nominal GDP (billions of Congo francs): 2007: 5,148; 2008: 6,526; 2009: 8,729; 2010: 11,361; 2011: 13,746; 2012: 16,117; 2013: 18,869; 2014: 21,877.",
    "DRC became an IMF member on September 28, 1963; quota in the Fund: SDR 533 million.",
    "Previous PRGF arrangement (approved June 2002): SDR 580 million (US$924 million), almost fully drawn (SDR 553.47 million) and expired March 2006 without completion of the sixth review.",
    "On March 12, 2009, the Executive Board approved a disbursement equivalent to SDR 133.25 million (about US$212 million) under the Rapid-Access Component of the Exogenous Shocks Facility (RAC-ESF).",
    "[Democratic Republic of the Congo and the IMF](http://www.imf.org/external/country/COD/index.htm)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[Heavily Indebted Poor Countries (HIPC) Initiative](https://www.imf.org/external/np/exr/facts/hipc.htm)",
    "[Multilateral Debt Relief Initiative (MDRI)](https://www.imf.org/external/np/exr/facts/mdri.htm)",
    "[Poverty Reduction and Growth Strategy (PRGS)](https://www.imf.org/external/np/exr/facts/prsp.htm)",
    "[http://www.imf.org/external/mmedia/view.asp?eventID=1696](https://www.imf.org/external/mmedia/view.asp?eventID=1696)",
    "[http://www.imf.org/external/mmedia/view.asp?eventID=1673](https://www.imf.org/external/mmedia/view.asp?eventID=1673)",
    "[http://www.imf.org/external/mmedia/view.asp?eventID=1674](https://www.imf.org/external/mmedia/view.asp?eventID=1674)",
    "[IMF’s general and special SDR allocations](https://www.imf.org/external/np/tre/sdr/proposal/2009/0709.htm)",
    "[Press Release No. 02/27](https://www.imf.org/external/np/sec/pr/2002/pr0227.htm)",
    "[Press Release No. 09/74](https://www.imf.org/external/np/sec/pr/2009/pr0974.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
  ],
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