President of the Republic of the Congo, Denis Sassou Nguesso on Thursday said the Central African nation “is far from bankruptcy”.
“We are negotiating with the International Monetary Fund in trust and strict observation of procedures,” said the Congolese president in a televised speech aired, the eve of the 58th anniversary of the country’s independence from France.
Sassou Nguesso said he hopes to reach an agreement that will contribute significantly to improve the situation of its public finances.
The Republic of the Congo has already signed a letter of intent with the Breton Woods institution.
But negotiations seem to have taken time since the IMF discovered Congo’s hidden debt of over 5,000 billion CFA francs which represents 110 percent of its gross domestic product.
With external debt held by China at 34.15% and traders at 29.90%, the country posted a growth rate of -2% in 2017 and expects growth of 1.9% this year.
It has taken advantage in the price of oil to increase its oil production which is estimated at 350,000 barrels per day this year.