IMF board approves $449 mln bailout for Congo Republic
(Adds quote, details)
JOHANNESBURG, July 11 (Reuters) - The International Monetary
Fund's (IMF) executive board approved a three-year extended
credit facility programme worth $448.6 million for Congo
Republic on Thursday, the Fund said in a statement.
Congo's economy suffered from a sharp drop in oil prices in
2014, causing debt levels to balloon to 118% of GDP in 2017. But
negotiations for the bailout had dragged on for two years, as
the Fund required the government to ensure the long-term
sustainability of its debt.
Much of that is owed to China, and Congo reached an
agreement in April to restructure a portion of its Chinese debt.
"The recent agreement to restructure the Republic of Congo’s
bilateral debt should be accompanied by continued good-faith
efforts to restructure commercial debt," said IMF Deputy
Managing Director Mitsuhiro Furusawa.
The programme aims to support the authorities' efforts to
restore fiscal sustainability and rebuild regional reserves
while improving governance, the IMF said.
The IMF will disburse nearly $45 million immediately under
the conditions of the programme.
(Reporting by Joe Bavier
Editing by Gareth Jones and Jonathan Oatis)
First Published: 2019-07-11 21:24:14
Updated 2019-07-11 22:15:32
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