September 30, 2022

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Congo, China agree to restructure Congo debt

In a telephone interview on Monday, Congolese Presidents Denis Sassou Nousseo and Chinese President Xi Jinping agreed to restructure Beijing’s largest Congolese debt to prevent the Central African country from resuming talks with the International Monetary Fund (IMF). Sources in the Press.

“The debt issue was raised by two presidents, and President Sassou Nusso presented the issue to his comrade (…) by presenting a proposal for his restructuring,” Minister Ricobert Roger Antelli told reporters. Congo Finance.

“President Xi Jinping approved (the request),” he added, reporting in a telephone interview with the two heads of state.

“This restructuring is to allow the country a little more resources to meet its own internal needs and to remove this barrier to good relations with the International Monetary Fund,” Mr Andiley explained.

“Chinese and Congolese experts are responsible for setting the terms and conditions,” he explained.

In Beijing, the new Chinese company noted a phone call between the two leaders, not to mention a Congolese debt restructuring.

Xi Jinping promised that China would encourage its companies to invest more in the Congo, especially in the health and agriculture sectors, the Chinese newspaper reported.

In 2019, China had already restructured Congo’s debt, which helped the country complete a project centered on an expanded credit facility with the International Monetary Fund.

But since then, Congolese debt, estimated at 110% of gross domestic product (GDP) by the International Monetary Fund, is considered “sustainable,” with Prime Minister Anadol Colinnet McCoso explaining in the National Assembly on Monday that the social standard in Central Africa is 70% of GDP.

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The International Monetary Fund has stopped its support. The country has doubled in its economic and health crisis due to falling oil prices and the spread of Govt-19.

According to the government, Congo owes 1.3 trillion FCFA (2 2 billion) to China, while the country’s total debt is currently 6 6,016.5 billion FCFA (over 10 10 billion) as of December 31, 2020. It is 98% of GDP. ”

LNT avec Afp