IMF approves $455 mn loan for Congo
The IMF board on Monday approved a
three-year, $455 million loan for the Republic of Congo to help undergird the
small African nation's economic recovery.
The global crisis-lender will
provide $90 million immediately under the Extended Credit Facility to help the
oil-dependent country deal with the impact of the Covid-19 pandemic.
The economy "is expected to
strengthen in the second half of the year, supported by vaccine rollout, social
spending, and domestic arrears, payments," IMF Deputy Managing Director
Kenji Okamura said in a statement
"However, the nascent recovery
is facing significant risks, including a possible worsening of the pandemic
(and) continued volatility in oil prices."
But reducing the nation's "debt
vulnerabilities" will be key, Okamura said, noting the government is
working on restructuring its debt.
Congo, a land of five million people
that abuts the vast Democratic Republic of Congo, relies on oil for most of its
wealth and has build up debt to China for loans used to help build some of its
petroleum infrastructure.
The IMF estimates the economy will
grow 2.4 percent this year after a slight contraction in 2021.