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Congo takes first step in IMF negotiations

01 May 2019

A Congolese government delegation, led by Development, territorial equipment and public works, Jean Jacques Bouya, was recently in Beijing, China from 22 April to 1 May.

In the capital of the Great Empire, this delegation had an intense activity with Chinese authorities.

The first was the signing on April 29 of the restructuring agreement of the debt the Republic of Congo to the People's Republic of China.

As one of the requirements of the International Monetary Fund, this decisive agreement for Congo is the result of two years of negotiations with the Chinese financial, technical and political partners and has interesting prospects for the continuation of negotiations with its technical and financial partners.

The document was signed on the Congolese side by the Minister of Finance and Budget, Calixte NGANONGO, in the presence of his colleague Jean Jacques BOUYA of development, territorial equipment, public works and on the Chinese side by PENG HAO, Deputy Director General, Head of Sovereign Loans at the Export Import Bank of China (Eximbank).

Playing a very important role in the strategic partnership concluded in 2009 in Congo and China, Eximbank China, through this agreement to restructure Congo's debt to China, reaffirms its position as a key player, technical and financial partner of this cooperation. In his address, the deputy director general of this financial institution said he was satisfied with the successful outcome of these negotiations. “Eximbank China has made every effort to relieve Congo's debt pressure”, he emphasized.  

This dossier, which caused quite a stir in political and financial settings has finally had a favorable outcome. The Congolese side welcomes its outcome, after several meetings and working sessions as well as several trips between Brazzaville and Beijing. “After a long period of discussions which underlie our cooperation in the face of our debt which had become unsustainable, today we are satisfied that there is a happy outcome. That of the restructuring of this debt. And we no longer have any doubts about our partner's desire to support Congo in its development” stressed the Minister of Finance and Budget, Calixte NGANONGO. 

To add more solemnity, the signing of the agreement to restructure the Congo's debt to China was sanctioned by the reception of the Congolese delegation by the president of Eximbank China.

This reception is sufficient proof that cooperation between Congo and China, brought to the highest level by the two heads of state, their Excellencies Denis SASSOU NGUESSO and XI JINPING is on good footing. It is worth adding that in addition to the tangibility of the evidence of this cooperation, its future has been immortalized.

And this was not all, the delegation had to agree with the Chinese state insurer Sinosure whose role in the outcome of the restructuring of the Congo's debt to China cannot be underrated.

This justifies the working session that the two Congolese ministers and their entourage had with the president of this institution to discuss the insurance premium corresponding to the amount of the rescheduled debt.

The other key activity of the government delegation’s visit was the calendar for preparations of the Invest in Africa forum to be held from 10 to 12 September 2019 in Brazzaville. 

In order to ensure the commitment of the Chinese authorities in the success of this forum, two meetings were held between the two members of the Congolese government Jean Jacques BOUYA of development, territorial equipment and public works and Calixte NGANONGO of finance and budget and the Chinese authorities involved in the fifth edition of the forum.

With their host, the Chinese Vice-Minister of Finance, XU HONG CAI, Ministers Jean Jacques BOUYA and Calixte NGANONGO gave an overview of the preparations for this forum, in accordance with the conclusions of previous meetings held in Beijing and Washington. They were all unanimous on the choice of themes and the obligation of results, in order to maximize the number of contracts to be signed in Brazzaville.

The Chinese vice minister of finance stressed the need for China to share its experience in improving the business environment.

The second meeting between the two members of government and the vice-president of China development bank, ZHANG XUNUANG focused on the contribution of this bank in the organization of the Invest in Africa forum.

The next mission of this bank to Brazzaville will discuss with the Congolese organizing committee of the Invest in Africa forum on the organization of this event.

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