The International Monetary Fund (IMF) Executive Board has completed the sixth and final review of the Republic of Congo's Extended Credit Facility (ECF) arrangement, initially approved on January 21, 2022. This conclusion allows for an immediate disbursement of approximately US$43 million, bringing total disbursements under the ECF Arrangement to about US$430 million.
The review highlighted mixed program performance with delays in implementing structural reforms. The authorities addressed breaches related to external debt service and newly contracted debt guaranteed by natural resources. Waivers were granted due to corrective actions taken, including clearing newly accumulated external arrears and fiscal tightening measures.
Fiscal policy aims to reduce vulnerabilities while enhancing debt sustainability. A domestic debt reprofiling operation was undertaken to extend treasury obligations' maturities amid liquidity tensions. The fiscal deficit decreased more than expected in 2024 due to under-execution of spending. The 2025 budget continues fiscal consolidation while prioritizing development and social expenditure.
Efforts are needed to sustain structural reform momentum, improve public finance management, and enhance governance reforms. Economic recovery is moderate, with growth expected to increase over the next two years. Inflation is anticipated to rebound before aligning with regional targets.
Deputy Managing Director Nigel Clarke noted that "the Republic of Congo’s recovery has firmed up," but highlighted risks from volatile oil prices and funding pressures. He emphasized the importance of maintaining macroeconomic stability and pursuing inclusive growth.
"Program performance was mixed," Clarke stated, acknowledging met criteria but also breaches in some areas. He encouraged continued fiscal consolidation efforts and enhanced coordination on debt management issues.
Economic diversification through private investment depends on sustained implementation of structural reforms. Transparency improvements in public finances and the hydrocarbon sector are crucial for resilient growth.