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The Democratic Republic of the Congo: Staff-Monitored Program and Request for Disbursement under the Rapid Credit Facility—Informational Annex

Author(s):
International Monetary Fund. African Dept.
Published Date:
December 2019
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Relations with the IMF

As of October 31, 2019

Membership Status: Joined September 28, 1963; Article VIII

General Resources Account:SDR MillionPercent of Quota
Quota1,066.00100.00
Fund holdings of currency1,066.00100.00
Reserve Tranche Position0.000.00
SDR Department:SDR MillionPercent of Quota
Net cumulative allocation510.86100.0
Holdings4.420.86
Outstanding Purchases and Loans:SDR MillionPercent of Quota
ECF Arrangement49.494.64

Latest Financial Arrangements:

TypeApproval DateExpiration DateAmount Approved (SDR Million)Amount Drawn (SDR Million)
ECF1Dec 11, 2009Dec 10, 2012346.45197.97
ECF1June 12, 2002Mar 31, 2006580.00553.47
Stand-ByJune 09, 1989June 08, 1990116.4075.00

Overdue Obligations and Projected Payments to Fund:2

(SDR million; based on existing use of resources and present holdings of SDRs):

Forthcoming
20192020202120222023
Principal9.9029.709.90
Charges/interest1.134.114.114.114.11
Total11.0333.8114.014.114.11

Implementation of HIPC Initiative:

I.Commitment of HIPC assistanceEnhanced Framework
Decision point dateJuly 2003
Assistance committed by all creditors (US$ millions)37,252.00
Of which: IMF assistance (US$ millions)391.60
(SDR equivalent millions)280.30
Completion point dateJuly 2010
II.Disbursement of IMF assistance (SDR millions)
Assistance disbursed to the member280.30
Interim assistance49.05
Completion point balance231.25
Additional disbursement of interest income450.44
Total disbursements330.74

Implementation of MDRI Assistance:

I.MDRI-eligible debt (SDR Million)5248.08
Financed by: MDRI Trust0.00
Remaining HIPC resources248.08
II.Debt Relief by Facility (SDR Million)
Eligible Debt
Delivery DateGRAPRGTTotal
July 2010N/A248.08248.08

Exchange Rate Arrangement:

The currency of the Democratic Republic of the Congo (DRC) is the Congo franc (CDF). The de jure exchange rate arrangement is floating, although the Fund classifies the de facto exchange rate arrangement as “stabilized.” At end-March 2019, the rate was US$1=CF 1652.7. Effective February 10, 2003, the DRC accepted the obligations of Article VIII, Sections 2 (a) 3, and 4, of the Fund’s Articles of Agreement. However, the DRC maintains one exchange rate restriction subject to Fund approval arising from an outstanding net debt position against other contracting members under the inoperative regional payments’ agreement with the Economic Community of the Great Lakes Countries.

Last Article IV Consultation:

The last Article IV consultation was concluded by the Executive Board on September 4, 2019.

Safeguards Assessment:

An updated safeguards assessment of the Banque Centrale du Congo (BCC) completed in April 2010 found that while most of the 2008 recommendations had been implemented, significant risks remained. The BCC continued to lack autonomy from the government and was in need of recapitalization, and the absence of an independently defined financial reporting framework continued to impair transparency. The Ministry of Finance completed the first phase of the recapitalization in March 2011 by bringing the BCC’s net worth to zero. The IMF has been providing technical assistance to support the recapitalization efforts. While the BCC committed to adopt IFRS as its financial reporting framework in 2003, the transition process has been significantly delayed. The BCC Law was amended in December 2018 with changes in the provisions on independence, autonomy, and transparency.

Resident Representative: Mr. Philippe Egoumé Bossogo assumed his duties in September 2018.

1

Formerly Poverty Reduction and Growth Facility (PRGF).

2

When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

3

Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two numbers cannot be added.

4

Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.

5

The MDRI provides 100 percent debt relief to eligible countries that qualified for the assistance. Grant assistance from MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.

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