On April 2019, the Republic of Congo and the Import-Export Bank of China signed in Beijing (China), a Complementary Agreement Congo's Debt to China Restructuring. This Agreement is part of discussions between Congo and the International Monetary Fund (IMF) with a view to concluding a Programme supported by an Extended Credit Facility. This Programme is structured around several axes, including Public Debt Restructuring, to make it sustainable. 

Purpose of the Agreement

The purpose of the Complementary Agreement for Restructuring Congo's Debt to China is to:

• Make Congo's debt to China sustainable;
• Readjust the repayment schedule;
• Maintain positve economic cooperation; between Congo and China.

Terms and Conditions of the Agreement 

The Congo Debt Restructuring Complementary Agreement mainly includes the following terms and conditions:

• Payment of 33 per cent of the debt during the first three (3) years from the entry into force of the Agreement;
• Recheduling 67 per cent of the debt: to the residual maturity of each loan, a period of (15) years is added.

This Agreement relieves pressure on Congo's public finance to repay the Chinese debt of the eight credit agreements.  

These Credit Agreements were used to finance, between 2010 and 2014, the following socio-economic infrastructure credit agreements: 

1. Credit Agreement I for the rehabilitation of the Djiri water unit;
2. Credit Agreement II for the construction of reservoirs and installation of drinking water distribution network;
3. Credit Agreement III for the development and asphaslting of the 415 Kilometers Dolisie-Brazzaville section of Pointe-Noire Brazzaville road;
4. Credit Agreement IV for the construction of the Liouesso hydroelectric dam;
5. Credit Agreement V for the construction of the Brazzaville shopping centre;
6. Credit Agreement VI for the construction of the Mplila social houses in Brazzaville.
7. Credit Agreement VII for the construction of the Mpila commercial zone;
8. Credit Agreement VIII for the construction of the Mpila memorial in Brazzaville; 

The terms and conditions of the Complementary Agreement are as follows: 

• The interest rate applicable to the credit agreement I, II, IV, V, VI, VII and VIII is 1,5 per cent per year;
• The interest rate applicable to the credit agreement III is 2 per cent per year; 
• The term of the facility for each credit agreement is extended by (15) years;
• the commitment of Congo to repay to EXIM Bank China, between 2019 and 2021, approximately (1/3) of balance due  as of 31 March 2019 for all credit agreement;
• Setting the final repayment date and the repayment period for each credit agreement.

The Press office of the Ministry of Finance