Home DRC IMF approves release of $368.4 million to the Democratic Republic of the...

IMF approves release of $368.4 million to the Democratic Republic of the Congo under rapid credit facility Updated for 2021

82,140FansLike
2,966FollowersFollow
2,690SubscribersSubscribe
82,140FansLike
3,122FollowersFollow
2,690SubscribersSubscribe

Updated: February 24, 2021

The executive board of the International Monetary Fund (IMF) on Monday approved the release of $368.4 million to the Democratic Republic of Congo under the Rapid Credit Facility (RCF) to enable the central African nation meet its “urgent balance of payment needs”.

In addition, the board was informed about the IMF Managing Director’s approval of a staff-monitored program (SMP) running up to May 2020.

[read_more id="2" more="Read full article" less="Read less"]

IMF said the SMP is intended to “guide policy implementation, provide authorities with more time to identify, prioritize, and implement reforms aimed at boosting revenue, tackling corruption, and improving governance”.

According to the IMF, the economic environment in DRC remains challenging and vulnerable to shocks.

“Real GDP growth is projected to decelerate to 4.5 percent in 2019 from 5.8 percent in 2018. The recent fall in commodity prices, new spending initiatives, and looser spending oversight during the political transition period have led to a weaker fiscal position mostly financed by the central bank. In this context, international reserves have fallen to critically low levels creating urgent balance of payment needs”.

IMF said the new government is committed to implementing measures and reforms that would strengthen macroeconomic stability, reinforce international reserves, address issues related to poor governance, a difficult business environment, and pervasive poverty.

It also intends to boost domestic revenue by restoring the functioning of the VAT and enforcing the personal income tax, while improving mining revenue forecasting. In addition, the government intends to introduce strict spending caps, increase the effectiveness of monetary policy, and foster inclusive growth and private sector development including through infrastructure projects and free basic education.

[/read_more]

Simon Ateba
Simon Ateba
Simon Ateba covers the White House, the U.S. government, the International Monetary Fund, the World Bank and other financial and international institutions for Today News Africa in Washington D.C. Simon can be reached on simonateba@todaynewsafrica.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Now

TRENDING

Human Rights Watch concludes Abiy Ahmed’s soldiers bombed civilians to death, schools, hospitals and markets in Tigray region

Ethiopian federal forces carried out apparently indiscriminate shelling of urban areas in the Tigray region in November 2020 in violation of the laws of war, Human Rights Watch said on Wednesday. Artillery attacks at the start of the armed conflict struck homes, hospitals, schools, and markets in the city of Mekelle, and the towns of Humera and Shire, killing at least 83 civilians, including children, and wounding...

Stay connected

[/read_more]

[read_more id="2" more="Read full article" less="Read less"]

error: Alert: Content is protected !!
Reddit
Tweet
Share
Share
Pocket
Share
More