Title page

REPUBLIC OF CONGO

STAFF REPORT FOR THE 2021 ARTICLE IV CONSULTATION — INFORMATIONAL ANNEX

September 10, 2021

Prepared By

Contents

• FUND RELATIONS

• RELATIONS WITH THE WORLD BANK

• RELATIONS WITH THE AFRICAN DEVELOPMENT BANK

• STATISTICAL ISSUES

Fund Relations

A. Financial Relations

(As of June, 30,2021)

Membership Status: Joined: July 10, 1963; Article VIII

General Resources Account	SDR Million	Percent Quota
Quota	162.00	100.00
Fund holdings of currency (Exchange Rate)	142.05	87.68
Reserve Tranche Position	19.97	12.33

View Table

General Resources Account	SDR Million	Percent Quota
Quota	162.00	100.00
Fund holdings of currency (Exchange Rate)	142.05	87.68
Reserve Tranche Position	19.97	12.33

SDR Department	SDR Million	Percent Allocation
Net cumulative allocation	79.69	100.00
Holdings	50.72	63.65

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SDR Department	SDR Million	Percent Allocation
Net cumulative allocation	79.69	100.00
Holdings	50.72	63.65

Outstanding Purchases and Loans	SDR Million	Percent Quota
ECF Arrangements	32.64	20.15

View Table

Outstanding Purchases and Loans	SDR Million	Percent Quota
ECF Arrangements	32.64	20.15

Latest Financial Arrangements

Type	Date of Arrangement	Expiration Date	Amount Approved (SDR Million)	Amount Drawn(SDR Million)
ECF1	Jul 11,2019	Apr 10, 2021	324.00	32.40
ECF1	Dec 08, 2008	Aug 04,2011	8.46	8.46
ECF1	Dec 06, 2004	Jun 05, 2008	54.99	23.58

View Table

Type	Date of Arrangement	Expiration Date	Amount Approved (SDR Million)	Amount Drawn(SDR Million)
ECF1	Jul 11,2019	Apr 10, 2021	324.00	32.40
ECF1	Dec 08, 2008	Aug 04,2011	8.46	8.46
ECF1	Dec 06, 2004	Jun 05, 2008	54.99	23.58

Projected Payments to Fund¹

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

¹Formerly PRGF

	Forthcoming
	2021	2022	2023	2024	2025
Principal	0.24				6.48
Changes/Interest	0.01	0.02	0.02	0.02	0.02
Total	0.25	0.02	0.02	0.02	6.50

¹Formerly PRGF

View Table

	Forthcoming
	2021	2022	2023	2024	2025
Principal	0.24				6.48
Changes/Interest	0.01	0.02	0.02	0.02	0.02
Total	0.25	0.02	0.02	0.02	6.50

¹Formerly PRGF

Implementation of HIPC Initiative

Note:Decision point: point at which the IMF and the World Bank determine whether a country qualifies for assistance under the HIPC Initiative and decide on the amount of assistance to be committed.Interim assistance: amount disbursed to a country during the period between decision and completion points, up to 20 percent annually and 60 percent in total of the assistance committed at the decision point (or 25 percent and 75 percent, respectively, in exceptional circumstances).Completion point: point at which a country receives the remaining balance of its assistance committed at the decision point, together with an additional disbursement of interest income as defined in footnote 2 above. The timing of the completion point is linked to the implementation of pre-ag reed key structural reforms (i.e., floating completion point).

¹Assistances 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 term sat the decision point. Hence these two amounts cannot be added.

²Under 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.

Implementation of HIPC Initiative

Commitment of HIPC assistance		Enhanced Framework
Decision point date		Mar 2006
Assistance committed by all creditors (US$ Million)1		1,574.60
	Of which: IMF assistance (US$ million)	7.73
	(SDR equivalent in millions)	5.40
Completion point date		Jan 2010
Disbursement of IMF assistance (SDR Million)
Assistance disbursed to the member		5.40
	Interim assistance	0.90
	Completion point balance	4.49
Additional disbursement of interest income2		0.86
Total disbursements		6.26

Note:Decision point: point at which the IMF and the World Bank determine whether a country qualifies for assistance under the HIPC Initiative and decide on the amount of assistance to be committed.Interim assistance: amount disbursed to a country during the period between decision and completion points, up to 20 percent annually and 60 percent in total of the assistance committed at the decision point (or 25 percent and 75 percent, respectively, in exceptional circumstances).Completion point: point at which a country receives the remaining balance of its assistance committed at the decision point, together with an additional disbursement of interest income as defined in footnote 2 above. The timing of the completion point is linked to the implementation of pre-ag reed key structural reforms (i.e., floating completion point).

¹Assistances 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 term sat the decision point. Hence these two amounts cannot be added.

²Under 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.

View Table

Implementation of HIPC Initiative

Commitment of HIPC assistance		Enhanced Framework
Decision point date		Mar 2006
Assistance committed by all creditors (US$ Million)1		1,574.60
	Of which: IMF assistance (US$ million)	7.73
	(SDR equivalent in millions)	5.40
Completion point date		Jan 2010
Disbursement of IMF assistance (SDR Million)
Assistance disbursed to the member		5.40
	Interim assistance	0.90
	Completion point balance	4.49
Additional disbursement of interest income2		0.86
Total disbursements		6.26

Note:Decision point: point at which the IMF and the World Bank determine whether a country qualifies for assistance under the HIPC Initiative and decide on the amount of assistance to be committed.Interim assistance: amount disbursed to a country during the period between decision and completion points, up to 20 percent annually and 60 percent in total of the assistance committed at the decision point (or 25 percent and 75 percent, respectively, in exceptional circumstances).Completion point: point at which a country receives the remaining balance of its assistance committed at the decision point, together with an additional disbursement of interest income as defined in footnote 2 above. The timing of the completion point is linked to the implementation of pre-ag reed key structural reforms (i.e., floating completion point).

¹Assistances 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 term sat the decision point. Hence these two amounts cannot be added.

²Under 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.

Implementation of Multilateral Debt Relief Initiative (MDRI)

¹The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the 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.

Implementation of Multilateral Debt Relief Initiative (MDRI)

MDRI-eligible debt (SDR Million)1			7.86
Financed by: MDRI Trust			4.79
Remaining HIPC resources			3.07
Debt Relief by Facility (SDR Million)
Eligible Debt
Delivery Date	GRA	PRGT	Total
January 2010	N/A	7.86	7.86

¹The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the 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.

View Table

Implementation of Multilateral Debt Relief Initiative (MDRI)

MDRI-eligible debt (SDR Million)1			7.86
Financed by: MDRI Trust			4.79
Remaining HIPC resources			3.07
Debt Relief by Facility (SDR Million)
Eligible Debt
Delivery Date	GRA	PRGT	Total
January 2010	N/A	7.86	7.86

¹The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the 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.

Implementation of Catastrophe Containment and Relief (CCR): Not Applicable

As of February 4, 2015, the Post-Catastrophe Debt Relief Trust has been transformed to the Catastrophe Containment and Relief (CCR) Trust.

Safeguards Assessment:

The Bank of the Central African States (BEAC) is the regional central bank of CEMAC. Under the IMF safeguards policy and in line with the four-year cycle for safeguards assessments of regional central banks, a full safeguards assessment was completed in 2017 and an update assessment is expected to be conducted in due course. The 2017 assessment noted the positive steps taken by the BEAC to strengthen governance provisions and enhance financial reporting transparency. In particular, the BEAC has since implemented the priority recommendations from the assessment: the regional central bank’s secondary legal instruments were aligned with its amended Charter, and the FY 2019 and 2020 audited financial statements have been issued in compliance with IFRS. Both recommendations mark the conclusion of a multi-year governance-focused reform with support from the Fund. Staff maintains close engagement with the BEAC as it continues to implement a final recommendation to undergo an external quality assessment of its internal audit function.

B. Nonfinancial Relations

Exchange Arrangements:

The dejure and de facto exchange rate arrangement of the Central African Economic and Monetary Community (CEMAC) is a conventional peg. The Republic of Congo participates in the CEMAC and has no separate legal tender. Congo has accepted the obligations of Article VIII, Sections 2, 3 and 4 and maintains an exchange system free of restrictions on the making of payments and transfers for current international transactions and multiple currency practices. The regional currency is the CFA franc, which is pegged to the Euro at a fixed rate of CFAF 655.95 =Euro 1.

Article IV Consultations:

Consultations with Congo are now on a 12-month cycle, based on the Board decision on Article IV consultation cycles. The last Article IV consultation discussions were held in Brazzaville on October 24-November 6, 2019. The consultation was concluded by the Executive Board on January 17, 2020 when the staff report (Country Report No. 20/26 at www.imf.org) was discussed.

Technical Assistance

Technical Assistance Received in Fiscal Year 2021

Technical Assistance Received in Fiscal Year 2021

Dept/Provider	Topic	Mission Purpose	Start	End
Fiscal Affairs
AFC	Customs Administration	AFC: Customs Administration [WFH]	5/17/2020	5/22/2020
AFC	Public Financial Management	AFC: Continued development of the macroeconomic framework model [WFH]	5/25/2020	6/7/2020
AFC	Public Financial Management	AFC: REMOTE TA- Continued development of the macroeconomic framework	5/25/2020	6/5/2020
AFC	Public Financial Management	AFC: (Virtual TA): “Macro fiscal Review Fiscal Risk annual report»	8/31/2020	9/4/2020
FAD	Public Financial Management	Installation mission [Remote]	6/17/2020	6/19/2020
FAD	Public Financial Management	Upgrading the organizational chart of the MoF [Remote-20FA0033]	8/2/2020	8/17/2020
AFC	Public Financial Management	AFC: WFH – FAD Support on reorganizing ministry of Finance and Budget	8/3/2020	8/17/2020
AFC	Public Financial Management	AFC: (Virtual TA): Budget: « Review fiscal risk annual report»	8/31/2020	9/4/2020
FAD	Public Financial Management	Support the implementation of institutional and technical	11/30/2020	12/11/2020
FAD	Public Financial Management	Internal control	3/3/2021	3/14/2021
FAD	Public Financial Management	Internal control	3/3/2021	3/14/2021
AFC	Public Financial Management	AFC: (Virtual peer to peer) Budget: Immersion visit	3/15/2021	3/29/2021
AFC	Public Financial Management	AFC: (Virtual peer to peer) Budget: Immersion visit	3/15/2021	3/29/2021
AFC	Tax Administration	AFC: Tax Administration [WFH]	6/8/2020	6/15/2020
FAD	Tax Administration	Tax administration	7/5/2020	7/18/2020
AFC	Tax Administration	AFC: Tax Administration [WFH]	7/6/2020	7/17/2020
AFC	Tax Administration	AFC: Tax Administration [WFH]	8/3/2020	8/14/2020
FAD	Tax Administration	Joint mission with M2	8/3/2020	8/14/2020
FAD	Tax Policy	Review tax exemptions [remote]	6/8/2020	7/12/2020
FAD	Tax Policy	Role and structure of the Tax Policy Unit [remote]	8/3/2020	8/14/2020
Statistics
STA	National Accounts Statistics	(Remote TA) National Accounts (D4D)	7/20/2020	7/24/2020
AFC	National Accounts Statistics	(Remote TA) AFC: National Accounts	9/21/2020	10/2/2020
AFC	Government Finance Statistics	(Remote TA) AFC: Government Finance Statistics	2/15/2021	2/19/2021
STA	External Debt Statistics	Debt Sustainability and Debt Statistics (FSSF)	4/26/2021	4/30/2021

View Table

Technical Assistance Received in Fiscal Year 2021

Dept/Provider	Topic	Mission Purpose	Start	End
Fiscal Affairs
AFC	Customs Administration	AFC: Customs Administration [WFH]	5/17/2020	5/22/2020
AFC	Public Financial Management	AFC: Continued development of the macroeconomic framework model [WFH]	5/25/2020	6/7/2020
AFC	Public Financial Management	AFC: REMOTE TA- Continued development of the macroeconomic framework	5/25/2020	6/5/2020
AFC	Public Financial Management	AFC: (Virtual TA): “Macro fiscal Review Fiscal Risk annual report»	8/31/2020	9/4/2020
FAD	Public Financial Management	Installation mission [Remote]	6/17/2020	6/19/2020
FAD	Public Financial Management	Upgrading the organizational chart of the MoF [Remote-20FA0033]	8/2/2020	8/17/2020
AFC	Public Financial Management	AFC: WFH – FAD Support on reorganizing ministry of Finance and Budget	8/3/2020	8/17/2020
AFC	Public Financial Management	AFC: (Virtual TA): Budget: « Review fiscal risk annual report»	8/31/2020	9/4/2020
FAD	Public Financial Management	Support the implementation of institutional and technical	11/30/2020	12/11/2020
FAD	Public Financial Management	Internal control	3/3/2021	3/14/2021
FAD	Public Financial Management	Internal control	3/3/2021	3/14/2021
AFC	Public Financial Management	AFC: (Virtual peer to peer) Budget: Immersion visit	3/15/2021	3/29/2021
AFC	Public Financial Management	AFC: (Virtual peer to peer) Budget: Immersion visit	3/15/2021	3/29/2021
AFC	Tax Administration	AFC: Tax Administration [WFH]	6/8/2020	6/15/2020
FAD	Tax Administration	Tax administration	7/5/2020	7/18/2020
AFC	Tax Administration	AFC: Tax Administration [WFH]	7/6/2020	7/17/2020
AFC	Tax Administration	AFC: Tax Administration [WFH]	8/3/2020	8/14/2020
FAD	Tax Administration	Joint mission with M2	8/3/2020	8/14/2020
FAD	Tax Policy	Review tax exemptions [remote]	6/8/2020	7/12/2020
FAD	Tax Policy	Role and structure of the Tax Policy Unit [remote]	8/3/2020	8/14/2020
Statistics
STA	National Accounts Statistics	(Remote TA) National Accounts (D4D)	7/20/2020	7/24/2020
AFC	National Accounts Statistics	(Remote TA) AFC: National Accounts	9/21/2020	10/2/2020
AFC	Government Finance Statistics	(Remote TA) AFC: Government Finance Statistics	2/15/2021	2/19/2021
STA	External Debt Statistics	Debt Sustainability and Debt Statistics (FSSF)	4/26/2021	4/30/2021

Relations with the World Bank

The IMF and the World Bank teams maintain an ongoing exchange of views on relevant macroeconomic and structural issues in the Republic of Congo. Cooperation during the last year has included discussions related to the macroeconomic situation in Republic of Congo; institutional reforms for public financial management; scaling up of social safety nets; reinforcing human capital and capacity in statistics, improving quality in urban development and infrastructure sector and updates on the status of World Bank country programs. These World Bank country programs are aimed at improving competitiveness and development outcomes especially in the area of human capital, and include a conditional cash transfer program and measures to improve productivity including in the rural area through investment in the digital economy and in in roads, programs to develop seeds and the training of farmers. A full DSA was jointly prepared by IMF and International Development Association staff for the Article IV in January 2020.

Republic of Congo: IMF and WB Joint Action Plan

(As of June 23, 2021)

Republic of Congo: IMF and WB Joint Action Plan

(As of June 23, 2021)

Title	Products	Expected Delivery
WB work program in the next 12 months	Analytical Work
	Informing gender-smart social protection	January 2022
	Public Expenditure and Financial Accountability	June 2022
	Supporting Female Economic Empowerment, Youth Inclusion and Social Protection Delivery Systems	June 2022
	Health Financing Support for Universal Health Coverage	December 2022
	Public Expenditure Review 2021	December 2021
	Gender Skills Development	November 2021
	Country Economic Memorandum	June 2022
	Congo Ninth Economic Update	June 2022
	Lending
	Statistics Capacity Building Project US$29.28 million	Ongoing
	Urban Development and Poor Neighborhood Upgrading Project US$80 million	Ongoing
	Education Sector Support Project US$30 million	Ongoing
	Support to Enterprise Development and Competitiveness Project US$25 million	Ongoing
	LISUNGI Social Safety Nets Project US$34 million	Ongoing
	Commercial Agriculture Project US$100 million	Ongoing
	WB work program in the next 12 months	Analytical Work
	Skills Development for Employability Project US$25 million	Ongoing
	Integrated Public Sector Reform Project US$40 million	Ongoing
	COVID-19 Emergency Response Project US$23.31 million	Ongoing
	LISUNGI Emergency COVID-19 Response Project US$50 million	Ongoing
	Forest and Economic Diversification Project US$16.51 million	Ongoing
	Emissions Reductions Program in Sangha and Likouala US$41.8 million	Ongoing
	Northern Congo Agro forestry Project US$15.58	September 2021
	Kobikisa Health System Strengthening Project US$50 million	Ongoing
	Digital Acceleration Project US$100 million	February 2022
	Human Capital and Inclusion Project US$100 million	December 2021

View Table

Republic of Congo: IMF and WB Joint Action Plan

(As of June 23, 2021)

Title	Products	Expected Delivery
WB work program in the next 12 months	Analytical Work
	Informing gender-smart social protection	January 2022
	Public Expenditure and Financial Accountability	June 2022
	Supporting Female Economic Empowerment, Youth Inclusion and Social Protection Delivery Systems	June 2022
	Health Financing Support for Universal Health Coverage	December 2022
	Public Expenditure Review 2021	December 2021
	Gender Skills Development	November 2021
	Country Economic Memorandum	June 2022
	Congo Ninth Economic Update	June 2022
	Lending
	Statistics Capacity Building Project US$29.28 million	Ongoing
	Urban Development and Poor Neighborhood Upgrading Project US$80 million	Ongoing
	Education Sector Support Project US$30 million	Ongoing
	Support to Enterprise Development and Competitiveness Project US$25 million	Ongoing
	LISUNGI Social Safety Nets Project US$34 million	Ongoing
	Commercial Agriculture Project US$100 million	Ongoing
	WB work program in the next 12 months	Analytical Work
	Skills Development for Employability Project US$25 million	Ongoing
	Integrated Public Sector Reform Project US$40 million	Ongoing
	COVID-19 Emergency Response Project US$23.31 million	Ongoing
	LISUNGI Emergency COVID-19 Response Project US$50 million	Ongoing
	Forest and Economic Diversification Project US$16.51 million	Ongoing
	Emissions Reductions Program in Sangha and Likouala US$41.8 million	Ongoing
	Northern Congo Agro forestry Project US$15.58	September 2021
	Kobikisa Health System Strengthening Project US$50 million	Ongoing
	Digital Acceleration Project US$100 million	February 2022
	Human Capital and Inclusion Project US$100 million	December 2021

Relations with the African Development Bank

The IMF and the African Development Bank teams maintain an ongoing exchange of views on relevant macroeconomic and structural issues in the Republic of Congo. Cooperation during the last year has included discussions related to the macroeconomic situation in Republic of Congo; preparation of the Republic of Congo [list of major activities related to AfDB role in Congo and the budget support and project financing instruments]; reinforcing capacity in statistics, improving quality in urban development and infrastructure sector and updates on the status of the AfDB country programs. These AfDB country programs are aimed at [describe the focus and main goals of the existing and future projects and budget support mechanisms].

Republic of Congo: IMF and AfDB Joint Action Plan

(As of June 23, 2021)

Republic of Congo: IMF and AfDB Joint Action Plan

(As of June 23, 2021)

Title	Products	Expected Delivery
AfDB work program in the next 12 months	Analytical Work
	Studies of the impacts of the Covid-19 pandemic on the Congolese economy: the case of the oil-mining sector and employment	May 2021
	Implementation of the Agriculture Transformation Agenda in Congo	June 2021
	Lending
	PRODIVAC-Cofinancing of the Strategic Climate Fund of US$8 million, of which US$2 million from Grant.	June 2021
	Rural electrification project US$14.45 million	Ongoing
	Human skills and resources development project US$10.55 million	Ongoing
	Project to support investment climate and forest governance US$22.90 million	Ongoing
	Integrated Agricultural Value Chain Development Project US$88.14 million	Ongoing
	Economic and financial reform support program US$225.18 million	Ongoing
	Project to support the capacity building of the Ministry of Planning, Regional Integration and Statistics, GrantUS$1.14 million	Ongoing
	Ndende-Dolisie Road and Transport Facilitation Project US$44.05 million	Ongoing
	Ketta-Djoum road construction project phase 2 — Congo US$147.10 million	Ongoing
	Project Central Africa Backbone (CAB) — component related to Congo US$62.67 million	Ongoing
	Project for the improvement of road access to the road-rail bridge over the Congo river, Grant 2.82 million	Ongoing

View Table

Republic of Congo: IMF and AfDB Joint Action Plan

(As of June 23, 2021)

Title	Products	Expected Delivery
AfDB work program in the next 12 months	Analytical Work
	Studies of the impacts of the Covid-19 pandemic on the Congolese economy: the case of the oil-mining sector and employment	May 2021
	Implementation of the Agriculture Transformation Agenda in Congo	June 2021
	Lending
	PRODIVAC-Cofinancing of the Strategic Climate Fund of US$8 million, of which US$2 million from Grant.	June 2021
	Rural electrification project US$14.45 million	Ongoing
	Human skills and resources development project US$10.55 million	Ongoing
	Project to support investment climate and forest governance US$22.90 million	Ongoing
	Integrated Agricultural Value Chain Development Project US$88.14 million	Ongoing
	Economic and financial reform support program US$225.18 million	Ongoing
	Project to support the capacity building of the Ministry of Planning, Regional Integration and Statistics, GrantUS$1.14 million	Ongoing
	Ndende-Dolisie Road and Transport Facilitation Project US$44.05 million	Ongoing
	Ketta-Djoum road construction project phase 2 — Congo US$147.10 million	Ongoing
	Project Central Africa Backbone (CAB) — component related to Congo US$62.67 million	Ongoing
	Project for the improvement of road access to the road-rail bridge over the Congo river, Grant 2.82 million	Ongoing

Statistical Issues

(As of August 4, 2021)

1. Assessment of Data Adequacy for Surveillance
General: Data provision is broadly adequate for surveillance, but there are some key data shortcomings in national accounts, monetary, fiscal, and external sector statistics due to capacity constraints.
National Accounts: The National Statistics Institute (NSI) of the Ministry of Planning compiles annual national accounts series using the expenditure and production approaches, both in current values and in chain-linked volume terms. The NSI compiled national accounts estimates for 2005–19 (base year 2005) as it implemented the methodologies of the System of National Accounts (1993). The authorities are working to improve the GDP estimates in collaboration with AFRITAC Central, including through the use of value added tax data, and to establish a compilation system for quarterly national accounts through the development of monthly and quarterly indicators of economic activity.
Price Statistics: The NSI compiles a monthly national consumer price index (CPI) utilizing a harmonized methodology employed by all Central African Economic and Monetary Community (CEMAC) member countries. The Republic of Congo’s CPI is based on weights derived from a household expenditure survey conducted in 2011. The weights are out of date and are no longer representative of current expenditure patterns. An updated index reference period was introduced in January 2019 (2018=100), but the weighting structure was not updated.
Government Finance Statistics (GFS): Work continues to advance on the adoption of the CEMAC TOFE Directive based on Government Finance Statistics Manuals (GFSM) 2001/2014. Further Capacity Development (CD) activities have usefully focused on expanding GFS coverage, and annual data now include extra-budgetary units and local governments, although social security funds are still excluded. CD activities are also focused on improving the timeliness and resolving the inconsistencies between the outstanding stock of debt, future debt service payments, and debt-related flow data in the fiscal accounts among other areas. The reconciliation of fiscal and monetary statistics is still pending.
Monetary and Financial Statistics (MFS): Shortcomings for surveillance include the fact that depository corporation survey does not include data from deposit-taking microfinance institutions, a growing sector in the country. As the Other Financial Corporations (OFC) sector holds around 15 percent of total financial system assets in the CEMAC region, it is important to begin compilation of MFS for the insurance sector, which is the largest subsector of the OFCs. Collaboration between BEAC and the regional supervisory entity for insurance corporations (CIMA) is key for the expansion of MFS coverage to include insurance corporations. Congo’s Financial Access Survey (FAS) data is outdated (last reported in 2017).
Financial sector surveillance: Republic of Congo provides all core and eight encouraged financial soundness indicators (FSIs) for deposit-takers and two encouraged FSIs for real estate markets on a monthly basis (except for the core and encouraged FSIs on earnings and profitability, which are reported semi-annually) for dissemination on the IMF’s FSI website.
External Sector Statistics: A JSA-AFR project enabled the compilation of balance of payments (BOP) statistics submitted to STA through 2016, the first ever production of international investment position (IIP) data, and completion of quarterly BOP data for 2017 and 2018 which will support surveillance work. However, technical issues have delayed the publication of the results. BOP statistics reflect relatively good transactions coverage, but financial instruments breakdown should be improved for reconciliation with monetary and external debt statistics.
II. Data Standards and Quality
The Republic of Congo, which has been a participant in the IMF’s General Data Dissemination System (GDDS) since November 5, 2003.2 Metadata, with assistance of a 2019 IMF multisector mission, is posted on the Dissemination Standards Bulletin Board (http://dsbb.imf.org) but is not regularly updated.	No data ROSC has been conducted.

View Table

1. Assessment of Data Adequacy for Surveillance
General: Data provision is broadly adequate for surveillance, but there are some key data shortcomings in national accounts, monetary, fiscal, and external sector statistics due to capacity constraints.
National Accounts: The National Statistics Institute (NSI) of the Ministry of Planning compiles annual national accounts series using the expenditure and production approaches, both in current values and in chain-linked volume terms. The NSI compiled national accounts estimates for 2005–19 (base year 2005) as it implemented the methodologies of the System of National Accounts (1993). The authorities are working to improve the GDP estimates in collaboration with AFRITAC Central, including through the use of value added tax data, and to establish a compilation system for quarterly national accounts through the development of monthly and quarterly indicators of economic activity.
Price Statistics: The NSI compiles a monthly national consumer price index (CPI) utilizing a harmonized methodology employed by all Central African Economic and Monetary Community (CEMAC) member countries. The Republic of Congo’s CPI is based on weights derived from a household expenditure survey conducted in 2011. The weights are out of date and are no longer representative of current expenditure patterns. An updated index reference period was introduced in January 2019 (2018=100), but the weighting structure was not updated.
Government Finance Statistics (GFS): Work continues to advance on the adoption of the CEMAC TOFE Directive based on Government Finance Statistics Manuals (GFSM) 2001/2014. Further Capacity Development (CD) activities have usefully focused on expanding GFS coverage, and annual data now include extra-budgetary units and local governments, although social security funds are still excluded. CD activities are also focused on improving the timeliness and resolving the inconsistencies between the outstanding stock of debt, future debt service payments, and debt-related flow data in the fiscal accounts among other areas. The reconciliation of fiscal and monetary statistics is still pending.
Monetary and Financial Statistics (MFS): Shortcomings for surveillance include the fact that depository corporation survey does not include data from deposit-taking microfinance institutions, a growing sector in the country. As the Other Financial Corporations (OFC) sector holds around 15 percent of total financial system assets in the CEMAC region, it is important to begin compilation of MFS for the insurance sector, which is the largest subsector of the OFCs. Collaboration between BEAC and the regional supervisory entity for insurance corporations (CIMA) is key for the expansion of MFS coverage to include insurance corporations. Congo’s Financial Access Survey (FAS) data is outdated (last reported in 2017).
Financial sector surveillance: Republic of Congo provides all core and eight encouraged financial soundness indicators (FSIs) for deposit-takers and two encouraged FSIs for real estate markets on a monthly basis (except for the core and encouraged FSIs on earnings and profitability, which are reported semi-annually) for dissemination on the IMF’s FSI website.
External Sector Statistics: A JSA-AFR project enabled the compilation of balance of payments (BOP) statistics submitted to STA through 2016, the first ever production of international investment position (IIP) data, and completion of quarterly BOP data for 2017 and 2018 which will support surveillance work. However, technical issues have delayed the publication of the results. BOP statistics reflect relatively good transactions coverage, but financial instruments breakdown should be improved for reconciliation with monetary and external debt statistics.
II. Data Standards and Quality
The Republic of Congo, which has been a participant in the IMF’s General Data Dissemination System (GDDS) since November 5, 2003.2 Metadata, with assistance of a 2019 IMF multisector mission, is posted on the Dissemination Standards Bulletin Board (http://dsbb.imf.org) but is not regularly updated.	No data ROSC has been conducted.

Republic of Congo: Table of Common Indicators Required for Surveillance

(As of July 22, 2021)

¹Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

²Both market-based and officially determined, including discounts rates, money market rates, rates on treasury bills, notes and bonds.

³Foreign, domestic bank, and domestic non-bank financing.

⁴The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments. Data not provided by the authorities due to technical capacity constraints.

⁵Including currency and maturity composition.

⁶Includes external gross financial asset and liability positions vis-a-vis nonresidents. Data not provided by the authorities due to technical capacity constraints.

⁷Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).

Republic of Congo: Table of Common Indicators Required for Surveillance

(As of July 22, 2021)

	Date of latest observation	Date received	Frequency of Data7	Frequency of Reporting7	Frequency of Publication7
Exchange Rates	Current	Current	D	D	D
International Reserve Assets and Reserve Liabilities of the Monetary Authorities1	March 2021	June 2021	M	M	M
Reserve/Base Money	March 2021	June 2021	M	M	M
Broad Money	March 2021	June 2021	M	M	M
Central Bank Balance Sheet	March 2021	June 2021	M	M	M
Consolidated Balance Sheet of the Banking System	March 2021	June 2021	M	M	M
Interest Rates2	August 2019	October 2019	M	M	M
Consumer Price Index	May 2021	July 2021	M	M	M
Revenue, Expenditure, Balance and Composition of Financing3 — General Government4	N/A	N/A	N/A	N/A	N/A
Revenue, Expenditure, Balance and Composition of Financing3—Central Government	June 2021	July 2021	M	M	M
Stocks of Central Government and Central Government-Guaranteed Debt5	March 2021	July 2021	Q	Q	Q
External Current Account Balance	December 2019	July 2021	A	A	A
Exports and Imports of Goods and Services	December 2019	July 2021	A	A	A
GDP/GNP	2019	January 2021	A	A	A
Gross External Debt	March 2021	July 2021	Q	Q	Q
International Investment Position6	N/A	N/A	NA	NA	NA

¹Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

²Both market-based and officially determined, including discounts rates, money market rates, rates on treasury bills, notes and bonds.

³Foreign, domestic bank, and domestic non-bank financing.

⁴The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments. Data not provided by the authorities due to technical capacity constraints.

⁵Including currency and maturity composition.

⁶Includes external gross financial asset and liability positions vis-a-vis nonresidents. Data not provided by the authorities due to technical capacity constraints.

⁷Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).

View Table

Republic of Congo: Table of Common Indicators Required for Surveillance

(As of July 22, 2021)

	Date of latest observation	Date received	Frequency of Data7	Frequency of Reporting7	Frequency of Publication7
Exchange Rates	Current	Current	D	D	D
International Reserve Assets and Reserve Liabilities of the Monetary Authorities1	March 2021	June 2021	M	M	M
Reserve/Base Money	March 2021	June 2021	M	M	M
Broad Money	March 2021	June 2021	M	M	M
Central Bank Balance Sheet	March 2021	June 2021	M	M	M
Consolidated Balance Sheet of the Banking System	March 2021	June 2021	M	M	M
Interest Rates2	August 2019	October 2019	M	M	M
Consumer Price Index	May 2021	July 2021	M	M	M
Revenue, Expenditure, Balance and Composition of Financing3 — General Government4	N/A	N/A	N/A	N/A	N/A
Revenue, Expenditure, Balance and Composition of Financing3—Central Government	June 2021	July 2021	M	M	M
Stocks of Central Government and Central Government-Guaranteed Debt5	March 2021	July 2021	Q	Q	Q
External Current Account Balance	December 2019	July 2021	A	A	A
Exports and Imports of Goods and Services	December 2019	July 2021	A	A	A
GDP/GNP	2019	January 2021	A	A	A
Gross External Debt	March 2021	July 2021	Q	Q	Q
International Investment Position6	N/A	N/A	NA	NA	NA

¹Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

²Both market-based and officially determined, including discounts rates, money market rates, rates on treasury bills, notes and bonds.

³Foreign, domestic bank, and domestic non-bank financing.

⁴The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments. Data not provided by the authorities due to technical capacity constraints.

⁵Including currency and maturity composition.

⁶Includes external gross financial asset and liability positions vis-a-vis nonresidents. Data not provided by the authorities due to technical capacity constraints.

⁷Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).