The International Monetary Fund (IMF) on Thursday approved a bailout worth nearly $449 million for the Republic of Congo.
Congo’s economy suffered a sharp drop in crude prices in 2014 and debt levels soared to 118 percent of GDP by 2017. But even as its oil producing neighbours secured IMF programs, its negotiations for a bail out dragged on for two years.
The Republic of Congo has been struggling under a huge debt to China of nearly $2.56 billion at the end of March. It struck a deal to restructure portions of this debt in April.
The Bretton Wood institution has demanded that Congo ensure the long-term sustainability of is debt as precondition for a three-year extended credit facility programs.
The IMF’s executive board approval for this OPEC member country is seen as potentially setting precedent for other nations struggling under huge debts to China.