## IMF Executive Board concludes the first review of the Extended Facility Arrangement for the Republic of Congo

_IMF News, June 24, 2022_

## Source details

**Canonical URL:** [IMF Executive Board concludes the first review of the Extended Facility Arrangement for the Republic of Congo](https://www.imf.org/en/news/articles/2022/06/24/pr22227-republiccongo-executive-board-concludes-first-review-ecf)

## Other formats

- [Markdown version](/en/news/articles/2022/06/24/pr22227-republiccongo-executive-board-concludes-first-review-ecf/index.md)
- [Structured JSON version](/en/news/articles/2022/06/24/pr22227-republiccongo-executive-board-concludes-first-review-ecf/index.json)
- [Bundle manifest](/en/news/articles/2022/06/24/pr22227-republiccongo-executive-board-concludes-first-review-ecf/bundle-manifest.json)

## Bibliographic details
- Published: June 24, 2022

---

### Review conclusion and disbursement
- The Executive Board concluded the 1st review of the Republic of Congo’s SDR 324.0 million arrangement under the Extended Credit Facility (ECF), approved on January 21, 2022.
- Conclusion of the review enables the Republic of Congo to draw the equivalent of SDR 64.80 million (about US$ 87 million) as a disbursement under the Extended Credit Facility arrangement.
- Immediate disbursement of SDR 64.80 million (about US$ 87 million) will support implementation of development policies, maintain macroeconomic stability, and support economic recovery.

### Economic outlook and risks
- Economic recovery is gaining momentum but remains fragile against the backdrop of the COVID-19 pandemic and global consequences of the war in Ukraine.
- Recovery is driven by improved oil revenues; the non-oil sector faces headwinds from inflationary pressures.
- Rising inflation is holding back more vigorous economic activity amid surging global food and oil prices.
- Key risks to the outlook include:
  - lower oil prices and production,
  - new pandemic waves,
  - weak reform implementation,
  - climate shocks.

### Program performance and structural progress
- Program performance has been satisfactory; all performance criteria were met.
- Program-supported structural reforms are advancing, including:
  - a new public financial management (PFM) medium-term strategy and action plan,
  - adoption of a new anti-corruption law,
  - good progress toward publication of a decree on conflict of interests.

### Fiscal policy guidance and priority uses of oil windfalls
- Fiscal policy must balance supporting a robust recovery with safeguarding debt sustainability.
- Part of the oil revenue windfalls should finance:
  - increased social assistance,
  - tax deferrals initiated during the pandemic to help vulnerable businesses and households cope with high inflation.
- Part of the windfalls will finance arrears payments and increased social spending, and part will be saved to boost fiscal buffers and CEMAC regional reserves.
- Recommended fiscal and debt management priorities:
  - implement the authorities’ revenue mobilization strategy,
  - better prioritize public investment projects,
  - strengthen cash management,
  - improve debt management,
  - ensure public-sector liability management operations, including refinancing of external debt, are consistent with debt sustainability.

### Governance, transparency, and other reforms
- Progress in procurement and management of debt and public finances, including public investment, remains essential to:
  - avoid accumulation of domestic and external arrears,
  - improve spending efficiency and quality.
- Debt management reforms, coupled with implementation of the new anti-corruption architecture, could help cement recent gains in governance and transparency.
- Priority reform areas to unlock financing from development partners and achieve private sector-led diversification include:
  - public financial management,
  - governance,
  - transparency,
  - financial inclusion.
- It is particularly important to ensure oil revenues are managed transparently and to continue energy sector reforms.

### Regional implications
- Policies under the ECF-supported program will help reduce fragilities and place the Republic of Congo on a path of higher, more resilient, and inclusive growth.
- The program will also contribute to the regional effort to preserve external stability for the Central African Economic and Monetary Union (CEMAC).

*Press Release No. 22/227 — June 24, 2022, IMF Communications Department.*

---


## References

- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2022/06/24/pr22227-republiccongo-executive-board-concludes-first-review-ecf_