IMF, DRC reach deal on US$1,5bn loan review

THE International Monetary Fund said on Wednesday it had reached a staff-level agreement with Democratic Republic of Congo on the final review of a US$1,5 billion loan programme, noting the need for Congo to manage properly funds from a revised mining deal.

This takes Congo one step closer to completing an IMF programme for the first time. Previous agreements have been derailed by issues including a lack of transparency in its vast mining sector.

"Performance under the (three-year) program has been generally positive, with most quantitative objectives met and key reforms implemented, albeit at a slow pace," the Fund said in a statement.

Once approved by the IMF board, the agreement will allow for the disbursement of a final tranche of around US$200 million.

The IMF noted that the world's top supplier of cobalt - the mineral used in smartphones - and the third-largest producer of copper must account for the positive impact of a recently amended Sicomines joint venture with Chinese companies in its revised budget law for 2024.

"In addition, mechanisms will need to be put in place or reinforced to ensure the proper use and governance of these funds," the Fund said.

President Felix Tshisekedi pushed for the revision of the 2008 infrastructure for minerals deal with Sinohydro Corp and China Railway Group to bring more benefits for Congo. An agreement was signed in March. "The IMF is concerned about the mechanisms for using this money and has asked for it to be paid into the public treasury accounts rather than being managed by an agency as has been done in the past," a finance ministry official, who requested anonymity, told Reuters. — The East African