DR Congo to Benefit From a $9-billion Debt Relief Package

President Joseph Kabila - Showing Good Ledership

The International Monetary Fund says President Kabila is improving revenue collection, better managing state spending, and making it easier for businesses to operate. Ames says central-bank reforms should help reduce inflation and increase foreign currency reserves. And According to the IMF, the  Democratic Republic of Congo could have the bulk of its external debt forgiven by June in a deal with foreign donors and the International Monetary Fund.

President Joseph Kabila’s efforts to reform the economy and better control spending have placed  the Democratic Republic of Congo on the verge of an historic deal that could see that nearly $11-billion debt slashed to just more than $2 billion.  But the International Monetary Fund mission chief Brian Ames says “steadfast actions” are still needed, but the country appears on target to secure debt forgiveness by its 50th independence anniversary on June 30th. Ames says if the Kabila government continues to take necessary steps, the IMF and World Bank can prepare all the necessary documents for that plan to be in place by the end of June.

Central Bank Governor Jean-Claude Masangu Mulongo says,  If approved the debt forgiveness plan would cut Congo’s annual debt servicing from $920-million to just more than $200-million. The decision by the IMF on debt relief was delayed because of concerns about the conditions of loans in that Chinese mineral deal. The plan was modified to address those concerns, and Congo is again moving forward toward $70-million of a three-year, $550-million package of IMF loans due to be repaid at concessionary rates after 2016.

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