⁍ A group of banks has agreed more than $545 million worth of funding to boost Congo Republic’s long-suffering economy.
⁍ The oil-producer was hit by a sharp drop in crude prices in 2014, leaving it with debt of nearly $9.5 billion.
⁍ The IMF agreed a three-year $449 million bailout last year, but the coronavirus pandemic is expected to cause an economic contraction of 9% in 2020.
– The Democratic Republic of Congo has reached an agreement with the International Monetary Fund to get its economy back on track, Reuters reports. According to the New York Times, the country was once one of the fastest-growing economies in the world, but it was hit hard by low oil prices in 2014 that left it with debt of nearly $9.5 billion—most of which was owed to China and Western oil traders. The country’s economy is expected to shrink by 9% in 2020, and the agreement with the IMF will provide $545 million to get it back on track. “It is not a question of funding that is granted directly to the state, but funding to support businesses and allow the country’s economy to revive,” the CEO of one of the banks involved in the deal tells Reuters. “This will allow part of Congo’s internal debt to be settled.” Congo’s debt to its local creditors is “significant,” Prime Minister Clément Mouamba says. “First, we select a few creditors who will be paid on time. These creditors will have an obligation to put the money back into the economy.”
Source: https://www.reuters.com/article/congorepublic-economy/banks-agree-545-million-for-congo-republic-economy-idUSL5N2GG0F6