IMF Praises Congo Economy

IMF Praises Congo Economy

The IMF has commended Democratic Republic of Congo's economic progress and approved the release of 77 million dollars as part of an existing loan facility to the central African nation.

Separately, the Fund's country chief told newsmen he was seeing an improved business climate in Congo after a series of disputes with investors in its vast mining sector in recent months.

“Macroeconomic performance has improved markedly,” IMF Executive Board acting chairman, John Lipsky said in a statement.

“Economic activity is expanding at a strong pace, inflation has decelerated, the exchange rate has stabilised and debt relief has reduced the external debt burden that weighed heavily on the economy,” he added, in reference to the 12.3 billion dollars reduction made to Congo 's international debts last year.

The review is the second to be carried out as part of the three-year Extended Credit Facility, which started in December 2009 and is planned overall to release 541 million dollars in loans.

Growth in 2011

IMF country representative, Samir Jahjah, said the Fund agreed with Congo 's 2011 budget forecast of 6.8 per cent growth this year, up from around six per cent last year, and annual inflation averaging 9.9 per cent during 2011.

Jahjah dismissed fears that fiscal discipline would be abandoned as Joseph Kabila seeks re-election this year, saying the budget showed the government was committed to balancing its books.

He said that the high global prices for two major exports, cobalt and copper, would boost income and was optimistic Congo could allay concerns of would-be investors.

  “The government has put in a number of reforms to increase transparency which will take time to implement, but they have shown their commitment to do so, so we do see change and improvement, that is for certain,” he said. 

REUTERS/NAN/Margaret/Yinka