Congo-Brazzaville is hit hard by the drop in this oil revenue during this pandemic period. How are negotiations going, when relations between the IMF and Brazzaville are not in good shape?
According to our sources, Brazzaville’s request for assistance from the IMF concerns $ 300 million. President Denis Sassou-Nguesso said last week in an interview with RFI that negotiations were under way.
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The IMF asked Brazzaville to provide it with a number of ” guarantees “, Explains a source within the institution: in particular the detail of its financial operations in the first quarter, as well as that of the measures of support to the companies in this period of pandemic. On the other hand, the decision whether to grant this aid is ” dissociated “Said this source in the IMF, of the thorny question of the debt contracted by the Congo with several oil traders. A $ 1.5 billion debt that has long poisoned relations between the Fund and Brazzaville …
When in July the IMF finally agreed to come to the aid of the Congo by granting it a loan of $ 448.6 million over three years, it was on condition that Brazzaville negotiated a 30% discount on this debt. with these tankers in order to pay off this debt ” sustainable Explains an economist. A condition still not fulfilled… ten months later. This pushed the IMF in December to suspend payments.
“ We have confidence “President Denis Sassou-Nguesso told RFI on this subject last week. But this negotiation context worries more than one in this period of great turbulence for the country’s economy: ” We have lost the confidence of international financial institutions Fears a Congolese source close to this matter.