Democratic Republic of the Congo: First Review Under the Extended Credit Facility Arrangement, Requests for Waivers of Nonobservance of Performance Criteria, Modification of Quantitative Performance Criteria, and Financing Assurances Review -Press Release; Staff Report; and Statement by the Executive Director for the Democratic Republic of the Congo

International Monetary Fund

No 2025/195, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper presents IMF’s First Review under the Extended Credit Facility Arrangement, Requests for Waivers on Nonobservance of Performance Criteria, Modification of Quantitative Performance Criteria, and Financing Assurances Review with Democratic Republic of the Congo (DRC). The decision authorizes an immediate disbursement of US$ 261.9 million to bolster international reserves and build financial buffers. The DRC has faced significant challenges due to the intensification of armed conflict in its eastern regions since the end of 2024. Despite these difficulties, the economy remained resilient, with GDP growth reaching 6.5 percent in 2024, primarily driven by the dynamic performance of the extractive sector. External stability has improved, with a narrower current account deficit and continued accumulation of international reserves. The recent peace agreement between the DRC and Rwanda, mediated by the United States, is a positive step toward a peaceful resolution of the conflict and a renewed focus on development goals. Program performance was mixed; most end-December 2024 quantitative performance criteria were met, but two were missed: the domestic fiscal balance and the Central Bank of the Congo’s foreign exchange assets held with domestic correspondents. These misses were due to unexpectedly high spending late in the year, exacerbated by the security crisis, and higher-than-expected tax payments in foreign currency.

Keywords: Congolese authorities; implementation framework; DRC's economy; governments of the DRC; authorities' priority; action program; IMF's transparency policy; Fiscal stance; Budget planning and preparation; Arrears; Global (search for similar items in EconPapers)
Pages: 149
Date: 2025-07-16
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