The International Monetary Fund (IMF) announced on Monday the release of $ 368.4 million from an emergency line of credit so that Kinshasa can meet “its urgent balance of payments needs,” said a press release. institution.
The director of the fund also approved the establishment of a program which authorizes the teams of the IMF to help the authorities to implement their policy, the statement said.
The Fund notes that « the economic environment remains difficult and vulnerable to shocks », stressing that growth should decelerate sharply in 2019 to only 4.5% against 5.8% in 2018.
The DRC finds itself in a difficult financial position, explains the IMF due to a fall in the price of raw materials, new spending as well as more lax spending controls during the period of political transition.
All of this “has led to a poorer fiscal position largely financed by the central bank” and “in this context, international reserves have fallen to critical levels which has created urgent balance of payments needs”, notes the institution.
IMF team assistance is scheduled until May 2020.
The program « should allow the authorities more time to identify, prioritize and implement reforms aimed at increasing income, fighting corruption and improving governance, » the statement said.
This program is not accompanied by any financial aid, specifies the Fund.