The World Bank is granting the Republic of Congo (også benævnt Congo Brazzaville – tidl. Fransk Congo) a debt relief package worth 2,9 billion US dollar (18 milliarder DKR) against the central African countrys total debt of 9,2 billion dollar.
The agreement, announced Wednesday after negotiations were completed, had been in doubt because World Bank President Paul Wolfowitz had expressed misgivings about corruption in the Republic of Congo.
Since taking over as president last June Wolfowitz has made a campaign against corruption the hallmark of his administration. He has suspended loans to Chad and several other countries, charging corruption.
Pedro Alba, the World Banks Country Director for the Republic of Congo, said from Brazzaville, that the agreement contains performance triggers and conditions to ensure sustained momentum for changes to which the government has committed itself. The changes include health and education projects aimed at alleviating poverty.
Alba said the government must overhaul its financial and structural systems during the next two years at the state-owned oil company, including more transparent accounting for its oil revenues. – At least two years of sustained performance are required before the debt relief becomes irrevocable, he added.
More than half the money is owed to the so-called Paris Club of government creditors. Oil income, the mainstay of the countrys economy, was one billion dollar in 2004 and was expected to increase substantially in 2005 as a result of a sharp increase in prices.
The agreement with the World Bank, which has to be approved by its sister institution, the International Monetary Fund, provides the structure for Congo to deal with the Paris Club, its commercial creditors and multilateral lending institutions.
Some commercial creditors had taken to stealing shipments of Congo oil to get their money back.
Kilde: www.worldbank.org
