Congo seeks agreement with Glencore and Trafigura to restructure a debt of $1.7bn

The government of the Republic of Congo hopes to conclude an agreement with the oil traders Glencore and Trafigura to restructure a debt of 1.7 billion dollars before a meeting with the International Monetary Fund (IMF) to be held on next month. The information was given by Maixent Raoul Ominga, the head of the public oil company (SNPC).

The restructuring of loans guaranteed by Congolese oil granted by Swiss traders is a prerequisite for further disbursements from the IMF. This, in accordance with the loan program of 449 million dollars over three years, concluded last July between the institution and Brazzaville. Already 45 million have been released on the total envelope.

Sources familiar with the matter told Reuters a few weeks ago that talks between the Republic of Congo and Swiss energy traders had failed after companies rejected a debt reduction. In the new negotiations, if traders accept a lower value compared to the asset market, the Congo will spend less on servicing the debt.

The IMF estimated the debt burden of the Republic of the Congo at nearly $ 9.5 billion, or 85.5% of its GDP, when it approved its three-year loan program.

 

Source: Agence Ecofin

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