Paris Club grants Congo debt relief of 182 billion CFAF

11 Juin 2020

Brazzaville, Congo, June 11 (Infosplusgabon) - Representatives of the Paris Club creditor countries have agreed to grant the Republic of Congo a suspension of its debt services for the period, May 1 to December 31, Infosplusgabon learned on Thursday from the Congolese Ministry of Finance and Budget.

This decision was approved by the G20, in application of the sheet relating to the debt service suspension initiative (ISSD).

The resources freed up by this initiative will be used to increase spending dedicated to reducing the health, economic and social impact of the Covid-19 crisis.

Congo has undertaken to ask all of its other official bilateral creditors to treat debt services in accordance with the agreed form.

This initiative will help Congo improve transparency and debt management.

"The Paris Club creditors will continue to coordinate closely with other stakeholders during the implementation phase of this initiative, particularly when considering a possible extension of the suspension period," said the ministry.

To date, thirty eligible countries have officially applied to the Paris Club to benefit from the ISSD application. Of these countries, twelve have now signed a memorandum of understanding with the club.

The total amount of maturities in 2020 deferred has reached approximately US$ 1.1 billion, to which is added the carry-over of pre-existing arrears.

Founded in 1956, the Paris Club is an informal group of public creditors (including France, the United States, Germany, Japan and Switzerland) whose role is to find coordinated and lasting solutions to the difficulties of payment of indebted countries.

The members who agreed to Congo's application for debt relief are the governments of Belgium, Brazil, the Russian Federation and France.

FIN/ INFOSPLUSGABON/BOL/GABON2020

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