Congolese Prime Minister Anatole Collinet Makosso acknowledged the financial difficulties his country is facing, and promised to reduce a debt that has recently increased.
Anatole Collinet Makosso says to the National Assembly in the capital city Brazzaville that the financial difficulties, compounded by the health crisis, have increased our debt and reduced the ability to service it.
This speech by Prime Minister Makosso comes after Chinese President Xi Jinping agreed to a restructuring of Congo’s vast debts which prevents this Central African country from resuming negotiations with the International Monetary Fund (IMF).
Congolese Finance Minister Rigobert Roger Andely said President Denis Sassou Nguesso had “raised the problem” in a telephone call with Xi, “proposing a second restructuring” of the debt.
In 2019, China had already done so, which allowed the country to enter into an Extended Credit Facility-focused program with the IMF and unlock a $449 million loan.
The IMF has suspended its support. The country is doubly hit by the economic and health crisis due to the fall in oil prices and the spread of Covid-19.
The Congo owes China 1.3 trillion CFA francs (2 billion dollars), according to the government, while the country’s overall debt currently stands at 6 trillion CFA francs (more than 10 billion dollars) as of December 31, 2020.
