France and Congo have just signed a Fiscal Support Framework Agreement of 88.5 billion FCFA
18 nov, 2019
It is the Minister of Planning, Statistics and Regional Integration of the Republic of Congo, Ingrid Olga Ghislaine Ebouka-Babackas, representing her colleague of Finance and Budget, Calixte Nganongo, on the one hand, and the French Ambassador to Congo, François Barateau, accompanied by the Director of the French Development Agency (AFD), Lionel Cafferini, on the other hand, who signed this Framework Agreement, Monday 18 November 2019 in Brazzaville. This document will make available to Congo a fiscal support of 135 million Euros (or 88.5 billion F) over the period 2019-2021.
On this occasion, the two parties signed a credit agreement on the first tranche of this fiscal support, estimated at 45 million euros (or 29.518 billion F). According to the French diplomat, “this first tranche will be paid at the end of November or December 2019, if the Congo party accelerates the procedures”.
This fiscal support, which will be delivered by AFD, will enable the Congolese Government to restore the country's major macroeconomic balances and lay the foundations for a more inclusive and diversified growth.
The French Ambassador recalled that this privileged partnership will be regularly monitor through a bilateral Committee to be set up in the coming weeks.. Particular attention will be paid to the efforts undertaken by the Government to achieve the objectives of the IMF-support programme, in particular with regard to the preservation of social spending, the clearance of internal and external arrears and the implementation of structural government reforms. He concluded by reiterating the determined committment of France to support Congo through many long-term overaching projects that affect these sectors with a high social impact (access to drinking water, sanitation, electricity, vocational training and higher education, social transfers and income-generating activities for the most vulnerable populations, etc.) while stressing the demanding nature and the enhanced dialogue of this partnership.
Let us recall that this financing agreement confirms the committments announced by the French Minister of Economy and Finance, Bruno Lemaire, at the monetary meeting of the Franc zone, held in Kintélé (northern suburb of Brazzaville) in April 2018. The condition of this financing agreement imposed by France was the prior signature of the Programme Agreement with the International Monetary Fund (IMF). Four months after the signing of the Congo-IMF Programme, on 11 July 2019 in Washington, France has thus fulfilled its promise. It is therefore the first and only bilateral partner to show its willingness to help Congo, pending the support of the World Bank and the African Development Bank (ADB).
Welcoming this act, the Congolese Minister of Planning thanked France for honouring its committments, “stating that after this signature, this Framework Agreement will be submitted to Parliament for ratification approval”.
