IMF expresses concern over DR Congo debt

Kinshasha - A senior official with the International Monetary Fund (IMF) expressed concern over the Democratic Republic of Congo's levels of debt to China, in a report released on Wednesday after a 18-day visit.

IMF officials worked closely with the authorities examining the implications of the cooperation deal between the two nations, said Brian Ames, head of the IMF's Africa division, in a statement.

The mission called on Kinshasa to do everything to ensure that the deal, in its final version, involved a manageable debt, he added.

The report also said that Kinshasa had carried out its 2008 economic programme satisfactorily, cutting back its borrowing from banks.

Click here

It noted that its monetary policy had helped keep year-on-year inflation to 24 percent in figures published last month, despite the rising costs of oil and foodstuffs.

The UN mission nevertheless called for continued monetary discipline.

China has offered to lend DR Congo US$9-billion.

Six billion dollars would go towards developing the country's infrastructure; the rest would help kickstart the country's mining industry - and would be partially repayable in shares in that industry.

The deal would also involve a total write-off of all taxes during the reimbursement period for any investment agreed in a newly created joint mining venture.

China currently has a 68 percent share, the state-controlled Gecamines holds the rest, and the loan has been guaranteed by the Kinshasa government.

In August, local and international pressure groups, including Britain's Global Witness, urged Kinshasa to make public the details of any deals to mine its vast mineral resources wealth.

DR Congo holds some 34 percent of known global cobalt reserves - essential drivers in mobile phone batteries - as well as 10 percent of the world's copper.

Jean-Louis Kayitenkore
Procurement Consultant
Gsm: +250-08470205
Home: +250-55104140
P.O. Box 3867
East Africa
Blog: http://www.cepgl.blogspot.com
Skype ID : Kayisa66

No comments:

Post a Comment