The International Monetary Fund Board of Directors has approved a three-year aid programme worth $1.5 billion for the Democratic Republic of the Congo.
Nicolas Kazadi, Minister of Finance in a joint conference with IMF representative in Kinshasa said “the first axis of reform in the budgetary field is to create budgetary room for maneuver for the most important expenditure for the country, in particular social expenditure, with an indicator in the programme which is planned, and also for the most necessary investments, which naturally involves increasing tax and domestic revenue.
“The second axis of reform is the strengthening of the monetary framework, reforms at the central bank essentially and supervision of the financial sector.
“Finally, the third major axis of the reform is the improvement of governance and economic transparency, the fight against corruption in general, and not only the minning sector.
“1. 5 billion dollars is a significant sum, but it does not go directly to budgetary expenditure since the first disbursements are intended to strengthen the country’s exchange rate, and this amount compared to the country’s needs is almost insignificant. We are fully aware of this and one of the major objectives of the IMF-supported programme is this signal effect to show that the government is committed to a reform programme that will ensure a certain macroeconomic and financial stability that should translate into better economic and long-term growth prospects, and thus, attract partners and investors, whether domestic or foreign.”
An initial disbursement of $217 million has already been made and future disbursements will depend on strict adherence to the reform programme agreed between the IMF and the DRC.