IMF team visited Brazzaville (Republic of Congo) from September 25 to October 4, 2017
An IMF staff team headed by Abdoul Aziz Wane visited Brazzaville from September 25 to October 4, 2017 to
collect information, including to reassess the country's debt, discuss
cash management with the authorities, and conduct a scoping for a
diagnostic study on governance issues in the Republic of Congo.
At the end of the mission, Mr. Wane issued the following statement:
"The
mission wishes to thank the authorities for the excellent cooperation,
including the sustained efforts of the Technical Committee, which helped
obtain most of the information requested by IMF staff. The authorities
reiterated their commitment to work diligently toward a Fund-supported
program. The findings of the mission will inform the next steps toward a
possible IMF-supported program to restore macroeconomic stability, and
promote sustained and inclusive growth.
"The
Republic of Congo faces significant macroeconomic imbalances. Economic
activity is contracting further, while government deposits are
declining. Against this backdrop, the government accumulated external
and domestic arrears, despite a significant fiscal adjustment.
"Based
on information provided by the authorities, the mission and the
authorities estimate public and publicly-guaranteed debt as of end-July
2017 at CFAF 5,329 billion (about US$ 9.14 billion). In percentage of
GDP, the mission estimates this level of debt at around 110 percent.
This figure does not include debt under litigation nor domestic arrears
accumulated since 2014. The mission welcomed the authorities' commitment
to take measures to restore debt sustainability in the medium-term with
the support of their financial and legal advisors.
"The
IMF team welcomed the authorities' commitment to conduct a diagnostic
study on governance issues, with assistance from the Fund, to identify
visible and credible measures to improve governance and tackle
corruption. The mission took note of the authorities' intention to
improve the governance of public enterprises, including oil companies.
It encouraged them to strengthen the integrity of budget and cash
management processes, and prioritize spending to avoid the accumulation
of arrears.
