{
  "title": "IMF Survey: Democratic Republic of the Congo Gets $551 Million IMF Loan",
  "publication": "IMF News, December 11, 2009",
  "sourceUrl": "https://www.imf.org/en/news/articles/2015/09/28/04/53/socar121109a",
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  "summary": "The IMF approves a $551 million loan to the Democratic Republic of the Congo to support the central African country’s poverty reduction and growth policies and its program of structural reforms. The IMF also provides the country with $73 million in debt relief.",
  "authors": [
    "Brian Ames"
  ],
  "publishDate": "2009-12-11",
  "sections": [
    {
      "heading": "Overview",
      "content": "- On December 11, 2009, the IMF approved a loan of $551 million to the Democratic Republic of the Congo under the IMF’s Poverty Reduction and Growth Facility to support a three-year program.\n- The IMF also provided $73 million in additional interim assistance under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative."
    },
    {
      "heading": "Economic context and challenges",
      "content": "- Country status: post-conflict and debt-distressed following a decade-long conflict; transition to a democratically elected government and implementation of prudent economic policies since 2001 aided recovery and tamed hyperinflation.\n- Remaining challenges: per capita income and human development indicators among the lowest in Africa; insufficient domestic revenue mobilization; high external debt burden; unsettled security situation in the eastern provinces; dilapidated physical infrastructure.\n- Global conditions: onset of the global financial crisis slowed economic activity and aggravated vulnerabilities."
    },
    {
      "heading": "Program objectives and macroeconomic targets",
      "content": "- Program horizon: three-year program.\n- Growth target: average real GDP growth of 6.5 percent.\n- Inflation target: end-period inflation rate of 9 percent by 2012.\n- Reserves target: gross reserves equivalent to 10 weeks of nonaid imports in 2012.\n- External balance target: external current account deficit, including grants, limited to 25 percent of GDP on average."
    },
    {
      "heading": "Policy measures and structural reforms",
      "content": "- Enhancing economic growth:\n  - Reform public enterprises that provide growth-critical services.\n  - Streamline the regulatory environment to improve the business and investment climate.\n  - Deepen financial intermediation, including restructuring and recapitalizing the central bank and strengthening its capacity to supervise the financial sector.\n- Domestic revenue mobilization:\n  - Increase the revenue-to-GDP ratio from about 16 percent in 2009 to about 20 percent in 2012.\n  - Strengthen customs and tax administration, streamline and simplify the tax system, and introduce a value added tax.\n- Public expenditure management:\n  - Bolster budget planning and execution.\n  - Reinforce budget controls and improve transparency of government operations.\n  - Allocate more resources to priority spending."
    },
    {
      "heading": "External debt outlook and debt relief",
      "content": "- Stock of public and publicly guaranteed external debt: estimated at $13 billion at end-2008.\n- Present value ratios: estimated at 93 percent of GDP, 150 percent of exports, and 501 percent of government revenue excluding grants.\n- Enhanced HIPC Initiative: by reaching the completion point the country could benefit from debt relief of roughly $9 billion.\n- Post-relief vulnerability: external debt outlook will remain vulnerable to adverse exogenous shocks even after debt relief; essential to rely on grants and highly concessional loans for development financing."
    },
    {
      "heading": "Expected support and risks",
      "content": "- Donor expectations: development partners expected to step up budget assistance in support of the authorities’ reform agenda.\n- Financing strategy: reliance on grants and highly concessional loans emphasized to maintain sustainability.\n- Risks: unsettled security in eastern provinces, insufficient revenue mobilization, high external debt burden, and external shocks that could derail progress."
    },
    {
      "heading": "Key statistics and targets",
      "content": "- IMF loan amount: $551 million.\n- Additional interim HIPC assistance: $73 million.\n- External debt stock (end-2008): $13 billion.\n- Present value of external debt: 93 percent of GDP; 150 percent of exports; 501 percent of government revenue excluding grants.\n- Growth target: average real GDP growth of 6.5 percent.\n- Inflation target: end-period inflation rate of 9 percent by 2012.\n- Reserves target: gross reserves equivalent to 10 weeks of nonaid imports in 2012.\n- External current account deficit target: limited to 25 percent of GDP on average.\n- Revenue-to-GDP target: from about 16 percent in 2009 to about 20 percent in 2012.\n- Potential debt relief at HIPC completion point: roughly $9 billion.\n\nSource: IMF Survey, December 11, 2009.\n\n---\n\n\n References\n\n- https://www.imf.org/en/News/country-focus\n- PRESS CENTER\n- IMF Country Focus\n- Press release\n- Democratic Republic of the Congo and the IMF\n- Africa’s new growth engines\n- Africa regional outlook\n- Blog: IMF helps Africa\n- Poverty Reduction and Growth Facility\n- Heavily Indebted Poor Countries (HIPC) Initiative\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2015/09/28/04/53/socar121109a"
    }
  ],
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    "[Markdown version](/en/news/articles/2015/09/28/04/53/socar121109a/index.md)",
    "[Structured JSON version](/en/news/articles/2015/09/28/04/53/socar121109a/index.json)",
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    "Authors: Brian Ames",
    "Published: December 11, 2009",
    "On December 11, 2009, the IMF approved a loan of $551 million to the Democratic Republic of the Congo under the IMF’s Poverty Reduction and Growth Facility to support a three-year program.",
    "The IMF also provided $73 million in additional interim assistance under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative.",
    "Country status: post-conflict and debt-distressed following a decade-long conflict; transition to a democratically elected government and implementation of prudent economic policies since 2001 aided recovery and tamed hyperinflation.",
    "Remaining challenges: per capita income and human development indicators among the lowest in Africa; insufficient domestic revenue mobilization; high external debt burden; unsettled security situation in the eastern provinces; dilapidated physical infrastructure.",
    "Global conditions: onset of the global financial crisis slowed economic activity and aggravated vulnerabilities.",
    "Program horizon: three-year program.",
    "Growth target: average real GDP growth of 6.5 percent.",
    "Inflation target: end-period inflation rate of 9 percent by 2012.",
    "Reserves target: gross reserves equivalent to 10 weeks of nonaid imports in 2012.",
    "External balance target: external current account deficit, including grants, limited to 25 percent of GDP on average.",
    "Enhancing economic growth:",
    "Domestic revenue mobilization:",
    "Public expenditure management:",
    "Stock of public and publicly guaranteed external debt: estimated at $13 billion at end-2008.",
    "Present value ratios: estimated at 93 percent of GDP, 150 percent of exports, and 501 percent of government revenue excluding grants.",
    "Enhanced HIPC Initiative: by reaching the completion point the country could benefit from debt relief of roughly $9 billion.",
    "Post-relief vulnerability: external debt outlook will remain vulnerable to adverse exogenous shocks even after debt relief; essential to rely on grants and highly concessional loans for development financing.",
    "Donor expectations: development partners expected to step up budget assistance in support of the authorities’ reform agenda.",
    "Financing strategy: reliance on grants and highly concessional loans emphasized to maintain sustainability.",
    "Risks: unsettled security in eastern provinces, insufficient revenue mobilization, high external debt burden, and external shocks that could derail progress.",
    "IMF loan amount: $551 million.",
    "Additional interim HIPC assistance: $73 million.",
    "External debt stock (end-2008): $13 billion.",
    "Present value of external debt: 93 percent of GDP; 150 percent of exports; 501 percent of government revenue excluding grants.",
    "Growth target: average real GDP growth of 6.5 percent.",
    "Inflation target: end-period inflation rate of 9 percent by 2012.",
    "Reserves target: gross reserves equivalent to 10 weeks of nonaid imports in 2012.",
    "External current account deficit target: limited to 25 percent of GDP on average.",
    "Revenue-to-GDP target: from about 16 percent in 2009 to about 20 percent in 2012.",
    "Potential debt relief at HIPC completion point: roughly $9 billion.",
    "[https://www.imf.org/en/News/country-focus](https://www.imf.org/en/News/country-focus)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[IMF Country Focus](https://www.imf.org/en/news/country-focus)",
    "[Press release](https://www.imf.org/external/np/sec/pr/2009/pr09455.htm)",
    "[Democratic Republic of the Congo and the IMF](https://www.imf.org/external/country/cod/index.htm)",
    "[Africa’s new growth engines](https://www.imf.org/external/pubs/ft/survey/so/2009/CAR112309A.htm)",
    "[Africa regional outlook](https://www.imf.org/external/pubs/ft/reo/2009/AFR/eng/sreo1009.htm)",
    "[Blog: IMF helps Africa](http://blog-imfdirect.imf.org/2009/09/10/imf-helping-africa/)",
    "[Poverty Reduction and Growth Facility](https://www.imf.org/external/np/exr/facts/prgf.htm)",
    "[Heavily Indebted Poor Countries (HIPC) Initiative](https://www.imf.org/external/np/exr/facts/hipc.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
  ],
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