China agrees to second debt restructure for Republic of Congo
- Xi Jinping responds positively to direct appeal from his Brazzaville counterpart to renegotiate terms of US$2.4 billion loans
- A renewed agreement with Chinese lenders will help the central African country unlock funding from the IMF
In a call with Xi on Monday, President Denis Sassou Nguesso asked China to restructure the loans, according to officials in Brazzaville. Finance Minister Rigobert Roger Andely told a media briefing Xi had approved the request “and thanked him for this proposition”.
Andely said a team would be appointed with representatives from both sides to agree on the terms and conditions of the debt restructuring deal.
This is Congo-Brazzaville’s second bailout from China in about two years, after Beijing in 2019 restructured its debt and helped to unlock US$449 million from the IMF. But only US$45 million was disbursed before the IMF suspended payments and the country’s debt situation has worsened since last year because of the pandemic and a slump in oil prices.
“The debt is an obstacle to the conclusion and the continuation of relations with the IMF within the framework of the extended facility which was concluded in July 2019,” Andely said.
During the call, Xi said China would “encourage more Chinese companies to invest in Congo (Brazzaville), and is willing to deepen cooperation with the Congo in areas such as medical and health, agriculture, and people’s livelihood”.