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IMF and DR Congo reach agreement on last evaluation of loan offer

The International Monetary Fund said on Wednesday it had reached a stafflevel arrangement with Democratic Republic of Congo on the last review of a $1.5. billion loan program, noting the need for Congo to manage. effectively funds from a modified mining deal.

This takes Congo one step better to completing an IMF. program for the very first time. Previous agreements have actually been. derailed by concerns consisting of an absence of openness in its vast. mining sector.

Performance under the (three-year) program has been. usually positive, with many quantitative objectives satisfied and. essential reforms executed, albeit at a sluggish rate, the Fund stated. in a statement.

As soon as authorized by the IMF board, the arrangement will enable. for the disbursement of a final tranche of around $200 million.

The IMF kept in mind that the world's leading supplier of cobalt -. the mineral utilized in smart devices - and the third-largest producer. of copper must account for the positive impact of a just recently. changed Sicomines joint endeavor with Chinese companies in its. modified spending plan law for 2024.

In addition, mechanisms will need to be put in location or. strengthened to guarantee the proper usage and governance of these. funds, the Fund said.

President Felix Tshisekedi promoted the revision of. the 2008 infrastructure for minerals handle Sinohydro Corp. and China Railway Group to bring more advantages for Congo. An

arrangement was signed

in March.

The IMF is concerned about the mechanisms for using. this money and has asked for it to be paid into the public. treasury accounts rather than being managed by an agency as has. been performed in the past, a financing ministry authorities, who. asked for privacy, informed .

Publishing mining agreements was likewise among the. conditions of the IMF program and last week Congo

shared long-awaited details

of the revised Sicomines terms, that include around $7. billion of infrastructure investments from the Chinese side. offered that copper rates stay high.

Under the previous version of the contract, just $822. million of $3 billion guaranteed to facilities financial investments was. disbursed, according to a 2023 report by Congo's state auditor.

The modified deal still includes terms which Congolese. and worldwide civil society organisations see as. disadvantageous to Congo. These include Sicomines's exemption. from paying taxes up until 2040.

(source: Reuters)