Congo

The IMF has been accused of ignoring big debts owed by Congo-Brazzaville as it contemplates a bailout for Africa’s third-largest oil producer, the Financial Times reported. Commisimpex, a construction company owned by a UK national, has sued the central African nation, also known as the Republic of the Congo, over unpaid bills worth €1.2bn. It has written to the IMF to demand recognition of its claims alongside Chinese lenders and oil traders before the fund releases cash for the government of President Denis Sassou Nguesso.

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Construction firm Commisimpex is calling upon the International Monetary Fund (IMF) to make settlement of its 1.2 billion euro ($1.35 billion) debt dispute with Congo Republic a precondition for a bailout deal, according to a letter seen by Reuters. Congo’s negotiations for an IMF bailout program have dragged on since 2017, Reuters reported. The Fund’s executive board is due to consider a bailout for Congo on Thursday after the government agreed to restructure a portion of its debt to China.

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Advisers to Congo Republic’s government have warned it that there is a “major risk” the International Monetary Fund (IMF) will reject its bid for a long-sought bailout, according to a letter obtained by Reuters. Negotiations for an IMF programme have dragged on since 2017, with the IMF’s executive board demanding the central African oil producer ensure the sustainability of its debt, most of which is owed to China and oil traders, Reuters reported. At the end of its most recent mission to Congo this month, an IMF team said it was finally ready to support a three-year credit facility.

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The International Monetary Fund said it wants assurances from the Republic of Congo’s creditors about how the nation’s debt will be restructured before it considers a bailout, Bloomberg News reported. The debt-laden country has been trying to secure a bailout since last year from the IMF, which has asked the government to curb rampant corruption and divulge the assets of high-level officials before providing any support. Oil-producing Congo’s economy has contracted for the past two years and it owes creditors at least 5.31 trillion CFA francs ($9.2 billion).

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The Republic of Congo's state-owned insurer paid its first claims in eight years after selling real estate and is planning more property disposals to help recapitalize the business, Bloomberg News reported. Assurances et Reassurances du Congo, which owes claimants 7 billion CFA francs ($12 million), stopped payments in 2010 after the company struggled to reconstitute files damaged in a civil war a decade earlier.
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The Executive Board of the International Monetary Fund will examine debt-crippled OPEC member Congo Republic's request for a bailout on July 6, according to an IMF calendar seen by Reuters on Wednesday. Like other central African oil producers, Congo has been hit hard by low crude prices and is struggling under the weight of over $9 billion in debt, equivalent to around 110 percent of its gross domestic product, the International New York Times reported on a Reuters story.
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Swiss mining giant Glencore PLC unveiled a sweeping $5.6 billion restructuring of its troubled Congo copper company, Katanga Mining Ltd., resolving a heated dispute with Congo’s state-run mining company about a massive debt load it has built up over the past decade, The Wall Street Journal reported. Glencore said Katanga Mining will issue $5.6 billion in stock, which it will use to retire debt. The company had been saddled with $9.2 billion in high-interest debt, most of which is owed to Glencore.
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Lawyers for jailed Congo Republic opposition figure Jean-Marie Michel Mokoko called on the International Monetary Fund (IMF) to make his release a condition for the approval of a bailout for the debt-crippled nation, the International New York Times reported on a Reuters story. Like other Central African oil producing countries, Congo has been hit by low crude prices. Several neighbors, including Chad and Gabon, have already secured bailouts from the IMF.
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If it wasn’t for two sons in France sending money, pensioner George Kimbembe says he’d have joined the ranks of the dead in the Republic of Congo’s capital, Brazzaville. That foreign cash is a lifeline for the 76-year-old former civil servant who hasn’t received his pension for 13 months. It’s a shortfall emblematic of a fiscal crisis engulfing the oil-producing central African country that was battered by lower crude prices, owes creditors more than $9 billion and is seeking an International Monetary Fund bailout, Bloomberg News reported.
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Congo Republic’s government said it’s reached agreement with the International Monetary Fund on three key areas as it seeks a bailout from the multilateral lender, Bloomberg News reported. The oil-producing central African nation owes creditors at least $9.14 billion and is struggling to pay its debts because of a decline in oil prices since 2014. The government sought support from the IMF last year.
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