Press Release No. 24/408

Republic of Congo: Preliminary Statement of the IMF Staff Mission on the Sixth Review of the Extended Credit Facility Arrangement

November 7, 2024

Washington, DC: An International Monetary Fund (IMF) staff team, led by Roland Kpodar, met the Congolese authorities during October 7-18, 2024 in Brazzaville. Discussions continued in Washington during the 2024 Annual Meetings to conduct the sixth review of Congo’s three-year program supported by an arrangement under the Extended Credit Facility (ECF) approved by the IMF Executive Board on January 21, 2022.

“The IMF staff team welcomed the authorities’ reaffirmed commitment to pursue policies under the IMF-supported program aimed to safeguard macroeconomic stability, preserve fiscal sustainability, and boost inclusive and sustainable growth.

“Congo’s economic recovery continues at a growth rate of 2.6 percent projected for 2024, moderated by a slowdown in the oil sector. Growth is expected to pick up over the medium term, supported by resilient non-hydrocarbon activities, while inflation is projected to return gradually to the region’s 3 percent target. The country’s current account surplus is projected to continue declining, before turning negative, partly reflecting the projected decline in oil prices.

“Progress was made on policy measures to accelerate fiscal consolidation and advance the implementation of the structural reform agenda. Understandings were reached on the key parameters of the draft 2025 budget, prioritizing further revenue mobilization and expenditure rationalization efforts to enhance debt sustainability and alleviate funding challenges. On the structural front, the government will continue focusing on restoring adequate execution of social and investment spending, improving debt and public financial management, promoting transparency and governance, and furthering diversification.

“Amid ongoing funding tensions, the authorities decided to initiate a voluntary debt reprofiling covering CFAF 2,314 billion (about US$3.8 billion) of local currency-denominated treasuries previously issued on regional markets. Staff is engaging with the authorities to seek additional information to fully assess the implications for Congo’s public finances and regional financial stability, and the authorities’ measures to mitigate potential associated risks.

“The team is grateful to the authorities for the constructive discussions. Virtual discussions will continue over the coming days with the aim to reach a staff-level agreement. The completion of the review would be subject to approval of the IMF Executive Board.”