IMF Lends DRC Money to Stay Afloat
The International Monetary Fund (IMF) has granted the Democratic Republic of the Congo a $203.3 million loan to increase the nation’s foreign exchange reserves, which have dropped to $4.5 billion and are now only enough to pay two months’ worth of imports. The loan is a component of the extended credit facility (ECF) agreement the DRC agreed with the multilateral lender in July 2021. Under the terms of the agreement, DRC will receive 1.066 special drawing rights (SDRs), or about $1.52 billion, by the year 2024. The ongoing decline in Kinshasa’s foreign exchange reserves is a result of the country’s significant trade imbalance, which is now at 5.3% of GDP and is exacerbated by other domestic and global economic shocks.
