This archive report was first published on 25 January 2022.
On January 25, 2022, the International Monetary Fund (IMF) approved a $455 million loan for the Republic of Congo under the Extended Credit Facility.
The loan aims to help the oil-dependent country mitigate the economic impact of the Covid-19 pandemic.
According to IMF Deputy Managing Director Kenji Okamura, the economy is expected to strengthen in the second half of 2022, driven by vaccine rollout, social spending, and domestic arrears payments.
However, Okamura noted that the nascent recovery faces significant risks, including a possible worsening of the pandemic and continued volatility in oil prices.
Reducing the nation's debt vulnerabilities will be crucial, Okamura emphasized, as the government works on restructuring its debt.
The Republic of Congo, with a population of five million, relies heavily on oil for its wealth and has accumulated debt to China for loans used to build petroleum infrastructure.
According to the IMF, the country's economy is expected to grow 2.4 percent in 2022 after a slight contraction in 2021.
