IMF Reviews Completed for DRC Credit, Sustainability Plans

Washington, DC: The Executive Board of the International Monetary Fund (IMF) completed the second review under the Extended Credit Facility (ECF) Arrangement and the first review under the Resilience and Sustainability Facility (RSF) Arrangement for the Democratic Republic of the Congo (DRC), both approved on January 15, 2025 ( see PR 25/003 ). The completion of the second review of the ECF-supported program allowed for a disbursement equivalent to 190.4 million SDR (approximately US$ 261.9 million), bringing the aggregate disbursement to date to 570.9 million SDR (about US$ 785.3 million). The completion of the first review of the RSF allowed for a disbursement of 133.25 million SDR (approximately US$ 183.1 million).

The security situation in the eastern DRC remains challenging, despite the recent presidential-level endorsement of the U.S.-brokered peace accord between the DRC and Rwanda and the signing of a Qatar-mediated "Framework for a Comprehensive Peace Agreement" between the DRC government and the M23 rebel group. The renewed violence has further deepened the humanitarian crisis.

Economic activity has proven resilient amid these challenges. Real GDP growth is projected to exceed 5 percent in 2025 and 2026, driven by the continued dynamism of the extractive sector. External stability has strengthened, on the back of high copper exports and prices, notwithstanding the temporary suspension of cobalt exports for most of 2025. The resulting improvement in the current account balance enabled continued reserve accumulation, though reserves remain below the recommended adequacy level. Inflation fell sharply, from 11.7 percent at end-2024 to 2.2 percent in November 2025, as monetary policy remains tight, in the context of a sharp appreciation of the Congolese franc. Against this backdrop of declining inflation and rising real interest rates, the Central Bank of the Congo (BCC)'s Monetary Policy Committee has reduced the policy rate from 25 percent to 17.5 percent in early October.

Program performance under the ECF-supported arrangement has been satisfactory. All end-June 2025 performance criteria (PC) were met, except for a nonobservance of the continuous PC not to introduce or modify multiple currency practices for which the authorities requested a waiver of nonobservance given the temporary nature of the measure which has been discontinued. Most indicative targets were also met, except those related to the floor on social spending and the ceiling on spending executed through emergency procedures—owing to elevated exceptional security spending linked to the persistence of the conflict. Structural reform implementation has been satisfactory. Seven out of eight non-continuous benchmarks due at the second review were met, with the one—related to generalizing the standardized VAT invoicing system—implemented with a short delay. All three continuous structural benchmarks were met. Performance under the RSF arrangement has been equally satisfactory. Two reform measures, related to the analysis on climate-related fiscal risks in the budget and to the adoption of a disaster risk management policy, were implemented ahead of this review.

At the conclusion of the Executive Board's discussion, Mr. Okamura, Deputy Managing Director and Acting Chair, stated [1] :

"Economic activity in the Democratic Republic of the Congo (DRC) remains resilient, underpinned by robust performance in the mining sector, and inflationary pressures have moderated. Notwithstanding the positive outlook, downside risks persist, particularly related to security and humanitarian challenges, deeper and more prolonged cuts in official development assistance, and renewed commodity price volatility. Program performance has been satisfactory, and the authorities remain committed to their reform agenda.

"Persistently elevated security spending and other shocks have weighed on budget execution and the outlook. Security spending is expected to remain elevated in the near term, necessitating sustained fiscal discipline and a gradual move toward a resource-based fiscal framework. Targeted public financial management reforms—including enforcement of spending chain controls—will help curb procyclicality of spending, create space for investment and social spending, build resilience to shocks, and strengthen fiscal credibility. Ensuring adequate social spending, given the humanitarian crisis, is critical.

"A cautious, data-dependent monetary policy is appropriate. High uncertainties underscore the importance of carefully monitoring liquidity conditions and standing ready to adjust monetary policy as needed. Continued efforts to accumulate reserves, while safeguarding the role of the exchange rate as a shock absorber, remain paramount to building external resilience. The authorities are taking steps to strengthen the monetary policy framework and implement safeguards assessment recommendations. Measures to improve monetary policy transparency and communication and strengthen central bank independence would help to anchor expectations. Avoiding the occurrence of multiple currency practices is important.

"Advancing reforms to improve governance and transparency, strengthen anti-corruption and AML/CFT frameworks and enhance the business climate is critical for supporting private sector development and promoting diversified, sustainable, and inclusive growth. The implementation of reform measures under the Resilience and Sustainability Facility, including ahead of schedule, will help to mitigate the impacts of climate change on longer-term balance of payments stability."

[1] At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country's authorities. An explanation of any qualifiers used in summings up can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm .