IDEAS home Printed from https://ideas.repec.org/p/imf/imfscr/2025-075.html
   My bibliography  Save this paper

Republic of Congo: Sixth Review Under the Three-Year Arrangement Under the Extended Credit Facility, Request for Waivers of Nonobservance of Performance Criteria, and Financing Assurances Review

Author

Listed:
  • International Monetary Fund

Abstract

The fifth review of a three-year Extended Credit Facility (ECF) arrangement (SDR 324 million, 200 percent of quota) was concluded on July 10, 2024. Resilient activity in the non-hydrocarbon sector supported economic growth in 2024, while oil production continued to surprise on the downside. Inflationary pressures abated in 2024 on the back of moderating import costs, but the current account weakened driven by softening terms of trade, especially in the hydrocarbon sector. Meanwhile, low execution of capital and social spending and stronger-than-expected tax and hydrocarbon revenues improved the non-hydrocarbon primary deficit in the first half of 2024 by 2.4 percent of non-hydrocarbon GDP compared to the fifth ECF review (CR 24/251), with the annual projection set at 9 percent of non-hydrocarbon GDP. However, liquidity pressures heightened in 2024, and this, combined with expected large repayments of domestic debt falling due in 2025–26, prompted the authorities to initiate in October 2024 a domestic debt reprofiling operation, partially postponing the amortization of government treasuries beyond 2029. Public debt continued to be assessed as sustainable but “in distress” due to recurrent instances of new external arrears, which are expected to be cleared before the board date, and uncertainty about the timeline to resolve domestic arrears.

Suggested Citation

  • International Monetary Fund, 2025. "Republic of Congo: Sixth Review Under the Three-Year Arrangement Under the Extended Credit Facility, Request for Waivers of Nonobservance of Performance Criteria, and Financing Assurances Review," IMF Staff Country Reports 2025/075, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2025/075
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=565453
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfscr:2025/075. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.