National Monetary and Financial Committee and National Credit Council - The IMF expects a -2% growth for the Congolese economy in 2017

06 Dec, 2017

The National Monetary and Financial Committee of the Congo (NMFC) and the National Credit Council (NCC) successively met on December 6, 2017 in Brazzaville (Congo),  the national administrative headquarters of the Central African States Bank (CASB) under the chairmanship of the Congolese minister of finance and budget, the monetary watchdog, honourable Calixte Nganongo; in the presence of the Governor of the Bank, Abbas Mahamat Tolli and the national director of this sub-regional financial body, Michel Dzombala.

The participants took note of the development of the international and national economic situation during the third term of the year 2017 and of the perspectives.  This shows that the world economic recovery continued during that period due  not only to renewed activity in developed countries, but also  to a low inflation and to the appreciation of the euro against the American dollar.

According  to the International Monetary Fund economic projections, the world growth should strengthen by 3,6%  in 2017 and by 3,7% in  2018 against 3,2% in 2016. Against this favourable backdrop of the international environment, the Congolese economy was to trigger a slowdown in recession, with an improved growth rate of the GDP in 2017,  by -2% against   -2,8 % in 2016. The projection is based on the good performance of the oil production, notably with the increase in the production of Moho-North oil ore. Likewise, inflation ought to be moderate at an estimated rate of 0,2% in 2017 against 4,6% in 2016,  due to the slowdown in the domestic demand and to the weakness of the imported inflation.

As regard public finance, the Committee noted that the execution of the budget during the third term of 2017 showed a budgetary deficit, based on obligations and excluding grants, estimated at 486,5 billion CFA francs, against a deficit of 242,7 billion CFA francs during the same period last year.

At the financial level, the Committee noted a decrease in the money supply due to the contraction in net foreign assets. Despite a difficult economic situation, banks are still resilient and abide by the prudential ratios recommended by the Central African Banking Commission (COBAC).

As regard the financial market, the participants mentioned that activities had been marked by the gradual refinancing of the central bank by banks and by the gradual increase in treasury issues on the government securities market via open subscription.

The NCC adopts three draft basic texts and its budget for 2018

Three draft texts were adopted by the National Credit Council: the first one, a decree on its assignments, its  organization and its running, the second one on its rules of procedures and the third one, an order on a guaranteed minimum banking services, which  will enable people to freely access basic banking services.

Moreover, the CNC noted the report on the works on a simulated statement,  the calculation of the percentage rate of charge  and the exorbitant interest rate before determining  its budget for 2018 in the amount of 228, 584, 579 million CFA francs.

Press department of the  Ministry of finance