Preparations for the conclusion of a formal programme between DR Congo and the International Monetary Fund (IMF) are intensifying at the technical level. Objective: To agree on a joint strategy to be implemented to achieve this common objective within a period of six to nine months.
The delegation of experts from the Congolese Government led by the Minister of Finance, Sele Yalaghuli, and the delegation of the Deputy Head of Division of the IMF’s Public Finance Department, Moricio Villafuerte, began technical exchanges on Tuesday, October 15, 2019 in Washington. These discussions will continue later this week at IMF headquarters.
Indeed, the joint strategy to be put in place consists in particular in drawing up a dashboard document defining structural benchmarks (reforms to be implemented by DR Congo) and quantitative criteria (public treasury deficit, balance of payments, etc. on the basis of which IMF assessments will be carried out) for the next six or nine months.
It is also a question of developing a chronogram of step-by-step activities leading to the conclusion of a formal programme.
For the IMF, the challenge is to submit the Extended Credit Facilities Facility (ECF) program for review and approval in the second quarter of 2020 and to the IMF Executive Board in July 2020.
In the meantime, the option of a relatively short interim programme (six months) is being considered. This programme should build on the results of the Article IV consultations and be based on structural benchmarks and quantitative criteria that are realistic in the country context.
Thus, two evaluations of the economic governance and safeguard of the Central Bank will be carried out by the IMF over the next three months. And their relevant recommendations will be integrated into the programme to integrate into the Government’s economic programme to benefit from IMF facilities.
The first mission focusing on economic governance could be expected in Kinshasa in the first half of November 2019. While the option of mixing the two missions to save time would be conceivable, Moricio Villafuerte considers that the particularity and complexity of each of them compels them to carry them out separately but in a relatively short space of time.
All in all, both sides are clearly motivated to move this process forward, taking into account the urgent governance needs of DR Congo as defined by the Head of State, Felix Antoine Tshisekedi.
Finance Minister Sele Yalaghuli reiterated the Government’s commitment and readiness to accelerate the process at both the IMF and World Bank levels.
As a reminder, the IMF’s Extended Credit Facility supports countries’ economic programs aimed at restoring macroeconomic stability and sustainability while promoting strong and sustainable growth and poverty reduction. It also serves as a catalyst for mobilizing foreign aid.
Eric TSHIKUMA, Special Envoy