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.
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).