China agrees to reschedule Congo Republic's $2.4-billion debt
Chinese President Xi Jinping has agreed in principle to
reschedule Congo Republic's debt, Congolese Finance Minister Rigobert Roger
Andely said on Monday, June 21, adding that the move would help unlock stalled
International Monetary Fund (IMF) lending.
The IMF approved a $449-million, three-year lending program
in 2019 on the condition that the Central African oil producer ensured the
long-term sustainability of its debt.
Only $45 million has been disbursed to date, however, as the
government has struggled to secure a restructuring of its debt to oil traders.
"The debt is an obstacle to the conclusion and the
continuation of relations with the IMF within the framework of the extended
facility which was concluded in July 2019. That's the point that sometimes
hurts our country," said Andely.
Congo previously reached a deal with China in 2019 to
restructure a portion of its debt. That arrangement required Congo to repay a
third of its debt within three years, with the remainder benefiting from a
15-year extension of the repayment schedule.
President Denis Sassou Nguesso made the request for further
rescheduling during a phone call on Monday with his Chinese counterpart, Andely
said.
Andely said the Congolese president had told Xi that, in the
two years since the restructuring was agreed, the debt had again become
unsustainable due to the shock caused by the coronavirus pandemic.
"President Xi Jinping approved this and thanked him for
this proposition," Andely said.
The two presidents agreed to refer the issue to experts from
both countries to set the terms and conditions, he added.
Andely said Congo's debt to China stood at 1.3 trillion CFA
francs ($2.4 billion), down from a 2019 government figure of 1.48 trillion CFA
francs.
Congo also owes around $1.7 billion to Swiss energy traders
Trafigura and Glencore.
It reached a deal with Trafigura, which restructured its
loan in March, but has so far failed to reach a similar agreement with
Glencore.
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