IMF to disburse $200 million to Democratic Rep. of Congo under credit line

DAKAR (Reuters) – The International Monetary Fund (IMF) said on Monday it would disburse $200 million to Democratic Republic of Congo for balance-of-payment support, pending executive board approval in December.

The IMF said this had been agreed at staff level with Congo, which has a three-year, $1.5 billion extended credit facility programme with the lender agreed last year, to help meet financing needs associated with the coronavirus pandemic.

“Real GDP is showing resilience, with growth forecasted at 6.6 percent in 2022 supported by higher-than-projected mining production,” the IMF said in a statement.

However, it said growth was projected to slow to 6.3% in 2023 amid domestic policy tightening and a global slowdown.

Inflation is expected to exceed 12% by the end of 2022 due to higher global food and fuel prices exacerbated by the war in Ukraine, and supply chain bottlenecks, it added.

(Reporting by Nellie Peyton; Editing by Estelle Shirbon)