{ "title": "IMF Staff Finalizes 2017 Article IV Consultation with the Republic of Congo and Initiates Discussions on a Possible IMF-Supported Financial Arrangement", "publication": "IMF News, March 9, 2017", "sourceUrl": "https://www.imf.org/en/news/articles/2017/03/09/pr1779-republic-of-congo-imf-staff-finalizes-2017-article-iv-consultation", "canonical": "https://www.imf.org/en/news/articles/2017/03/09/pr1779-republic-of-congo-imf-staff-finalizes-2017-article-iv-consultation", "overlayPath": "/en/news/articles/2017/03/09/pr1779-republic-of-congo-imf-staff-finalizes-2017-article-iv-consultation/index.md", "summary": "Press Release No. 17/79; March 9, 2017.", "publishDate": "2017-03-09", "sections": [ { "heading": "Mission summary and timeline", "content": "- Press Release No. 17/79; March 9, 2017.\n- An IMF staff team headed by Abdoul Aziz Wane visited Brazzaville from February 20 to March 8, 2017.\n- Purpose: to initiate discussions toward a possible IMF-supported financial arrangement and to finalize the 2017 Article IV consultation." }, { "heading": "Key findings on economic conditions", "content": "- The Republic of Congo contracted sharply in 2016 due to the decline in international oil prices.\n- Public debt increased to 77 percent of GDP.\n- Imputed international reserves fell to 2 months of imports.\n- Nonperforming loans increased as the accumulation of government arrears impaired the balance sheets of private enterprises.\n- External arrears accumulated in 2016 and 2017.\n- The adverse oil price shock occurred amid efforts to improve infrastructure and increase public sector wages." }, { "heading": "Policy implications and authorities’ objectives", "content": "- Authorities aim to strengthen the Republic of Congo’s buffers, in line with the regional objective to safeguard external stability.\n- This requires significant fiscal adjustment to:\n - shore up investors’ confidence,\n - contain public debt to sustainable levels,\n - spur growth.\n- Authorities plan to adjust their spending envelope by prioritizing investment projects while protecting spending for social sectors and the safety net.\n- Authorities intend to boost revenue mobilization efforts to minimize spending cuts.\n- The authorities noted the concentration of debt service payments in the next three years that will complicate adjustment efforts." }, { "heading": "IMF staff response and next steps", "content": "- The IMF team welcomes the authorities’ plans to adjust their spending envelope.\n- The team made significant progress in assessing policies for 2017 and the medium term, and their implications for fiscal sustainability and external stability.\n- Discussions will continue in the coming weeks on a package of measures that could be supported by the IMF.\n- The views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board; staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision." }, { "heading": "Engagement and consultations", "content": "- The IMF team was received by His Excellency Prime Minister Clément Mouamba.\n- Meetings included:\n - State Minister of Economy, Industrial Development, and Promotion of the Private Sector, Mr. Ondongo;\n - Minister of Planning, Statistics and Integration, Ms. Ebouka-Babackas, acting Minister of Finance;\n - Minister of Large Projects, Bouya;\n - Minister of Health and Population, Ms. Mikolo;\n - Minister of Social Affairs, Humanitarian Action and Solidarity, Dinga-Dzondo;\n - Senior officials of the National Directorate of the Central Bank;\n - Representatives of the private sector and development partners." }, { "heading": "Media contact", "content": "- IMF Communications Department, Media Relations\n- Press Officer: Lucie Mboto Fouda\n- Phone: +1 202 623-7100\n- Email: MEDIA@IMF.org\n\nSource: IMF Press Release No. 17/79 (March 9, 2017).\n\n---\n\n\n References\n\n- Republic of Congo and the IMF\n- IMF Policy Advice -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2017/03/09/pr1779-republic-of-congo-imf-staff-finalizes-2017-article-iv-consultation" } ], "bullets": [ "[Markdown version](/en/news/articles/2017/03/09/pr1779-republic-of-congo-imf-staff-finalizes-2017-article-iv-consultation/index.md)", "[Structured JSON version](/en/news/articles/2017/03/09/pr1779-republic-of-congo-imf-staff-finalizes-2017-article-iv-consultation/index.json)", "[Bundle manifest](/en/news/articles/2017/03/09/pr1779-republic-of-congo-imf-staff-finalizes-2017-article-iv-consultation/bundle-manifest.json)", "Published: March 9, 2017", "Press Release No. 17/79; March 9, 2017.", "An IMF staff team headed by Abdoul Aziz Wane visited Brazzaville from February 20 to March 8, 2017.", "Purpose: to initiate discussions toward a possible IMF-supported financial arrangement and to finalize the 2017 Article IV consultation.", "The Republic of Congo contracted sharply in 2016 due to the decline in international oil prices.", "Public debt increased to 77 percent of GDP.", "Imputed international reserves fell to 2 months of imports.", "Nonperforming loans increased as the accumulation of government arrears impaired the balance sheets of private enterprises.", "External arrears accumulated in 2016 and 2017.", "The adverse oil price shock occurred amid efforts to improve infrastructure and increase public sector wages.", "Authorities aim to strengthen the Republic of Congo’s buffers, in line with the regional objective to safeguard external stability.", "This requires significant fiscal adjustment to:", "Authorities plan to adjust their spending envelope by prioritizing investment projects while protecting spending for social sectors and the safety net.", "Authorities intend to boost revenue mobilization efforts to minimize spending cuts.", "The authorities noted the concentration of debt service payments in the next three years that will complicate adjustment efforts.", "The IMF team welcomes the authorities’ plans to adjust their spending envelope.", "The team made significant progress in assessing policies for 2017 and the medium term, and their implications for fiscal sustainability and external stability.", "Discussions will continue in the coming weeks on a package of measures that could be supported by the IMF.", "The views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board; staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.", "The IMF team was received by His Excellency Prime Minister Clément Mouamba.", "Meetings included:", "IMF Communications Department, Media Relations", "Press Officer: Lucie Mboto Fouda", "Phone: +1 202 623-7100", "Email: MEDIA@IMF.org", "[Republic of Congo and the IMF](http://www.imf.org/external/country/COG/index.htm)", "[IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)", "[Press Releases](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2017/03/09/pr1779-republic-of-congo-imf-staff-finalizes-2017-article-iv-consultation/index.md", "json": "/en/news/articles/2017/03/09/pr1779-republic-of-congo-imf-staff-finalizes-2017-article-iv-consultation/index.json", "bundleManifest": "/en/news/articles/2017/03/09/pr1779-republic-of-congo-imf-staff-finalizes-2017-article-iv-consultation/bundle-manifest.json" }, "generatedAtUtc": "2026-09-25T20:39:21.661Z" }