Congo Republic Says It's Reached Accord With IMF on Three Issues

(Bloomberg) -- Congo Republic’s government said it’s reached agreement with the International Monetary Fund on three key areas as it seeks a bailout from the multilateral lender.

The oil-producing central African nation owes creditors at least $9.14 billion and is struggling to pay its debts because of a decline in oil prices since 2014. The government sought support from the IMF last year.

Congo Republic Says It's Reached Accord With IMF on Three Issues

President Denis Sassou Nguesso’s administration and the IMF have agreed the “technical contours” that would allow for a new IMF funding program, Communications Minister Thierry Moungalla said by phone Monday from the capital, Brazzaville. The areas of agreement are on debt levels, economic policy over the next three years, and the government’s war on corruption, he said, without elaborating.

“We now have a file for which we speak the same language with the IMF,” Moungalla said. “Barring any surprises, we should go to the IMF’s board of directors within a reasonable time.”

The IMF said last week a mission that visited Congo earlier this month reached “broad understandings” on policies that the IMF could support.

Congo’s debt includes $428 million of Eurobonds due in June 2029. The securities rallied last week after the government said they will be excluded from any plan to restructure its debt. The yield climbed 3 basis points to 8.29 percent by 8:52 a.m. in London on Monday.

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