IMF programme “positive” for Congo Republic’s lowly credit rating: Moody’s

Date:

LONDON (Reuters) – Congo Republic’s recently-agreed $450 million IMF support programme is a positive step for the country’s lowly credit rating, agency Moody’s said on Thursday.

Thank you for reading this post, don't forget to subscribe!

Moody’s currently rates Congo at Caa2, which is at the lower end of the ‘junk’ grade bracket and just above the level where a default is seen as imminent.

The International Monetary Fund finalised a three-year programme with the central African country last week following an agreement struck by the government in April to restructure some $2 billion in debt to China.

“Combined with the restructuring of debt owed to China, the IMF programme will be positive for private creditors,” Moody’s said in a report, as it should help ease its funding squeeze.

The oil producer has been hard hit by the fall in crude prices that had been going on until early this year. Government debt rose to as high as 130% of GDP in 2017 from 48% in 2014, and foreign exchange reserves dropped to as low as $300 million in March.

Despite the lift of the IMF support, the implementation of the required structural reforms would be difficult, Moody’s cautioned, given Congo’s very weak institutional framework.

It also stressed that its restructuring deal with China only pushed out the time it has to pay the debt rather than writing any of it off.

“Given our forecast for Brent prices to decline from $72 per barrel in 2018 to $65 in 2019, external liquidity pressures will likely remain,” Moody’s said.

Reporting by Marc Jones, Editing by William Maclean

Naija247news
Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

Share post:

Subscribe

Popular

More like this
Related

“Zack Orji survived two brain surgeries” – Emeka Rollas gives update

March 28, 2024. Azonuchechi Chukwu. The national president of the Actors...

Sokoto kidnap victim who spent 96 days in bandits’ captivity dies after regaining freedom

March 28, 2024. Azonuchechi Chukwu. A kidnap victim, Salisu Iliyasu Takakume,...

Thirteen Residents Arrested For Failing To Use Pedestrian Bridge in Lagos

March 28, 2024. Azonuchechi Chukwu. Thirteen residents in Lagos state have...

Dangote budgets N15bn for food intervention across Nigeria

March 28, 2024. Azonuchechi Chukwu The Aliko Dangote Foundation, (ADF) has...
Social Media Auto Publish Powered By : XYZScripts.com

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading