World Bank urges Brazzaville to reduce arrears, estimated at 13%
By the AFREEQUE newsroom, based on ACI
The World Bank called on the Congolese government to speed up reforms of public finance and debt management, at the presentation of its 13th economic monitoring report in Brazzaville on 10 November. Its senior economist, Rick Emery Tsouck Ibounde, notes that debt fell from about 103% of GDP in 2020 to 97%, but considers payment arrears, estimated at 13%, a concern.
The World Bank called on the Congolese government in Brazzaville on 10 November to speed up reforms of public finance and debt management in order to reduce payment arrears, estimated at 13%. The call was made at the presentation of the 13th edition of its report monitoring Congo’s economic and financial situation, titled "Escaping the debt trap: from arrears to lasting fiscal resilience".
The World Bank’s senior economist, Rick Emery Tsouck Ibounde, welcomed the fall in the debt ratio, from about 103% of GDP in 2020 to 97% at present. However, in his view, this improvement is not enough to rule out the risks linked to arrears, which weigh mainly on external commitments. "What keeps Congo in the joint debt sustainability analysis between the International Monetary Fund and the World Bank is the level of arrears. Although it has fallen from more than 30% in 2020 to 13%, this level remains a concern," he stressed. Their accumulation weakens public finances and penalises private companies, whose capacity to invest and create jobs is held back by the State’s payment delays.
The report recommends a three-pillar strategy: prevention and reduction of arrears, restoration of fiscal sustainability, and strengthening of debt management and public finance resilience. It requires better mobilisation of non-oil revenue, rationalisation of spending and a reduction in tax exemptions. If implemented consistently, it could put public debt on a downward path, the economist explained.
