Congo to amend 2010 budget to control spending

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The Democratic Republic of Congo is to amend its 2010 budget in a bid to ensure it qualifies for more debt relief, officials said.

The decision comes after the International Monetary Fund (IMF) said last month Congo’s external debt was unsustainable even after winning a $550 million loan, urging it to take extra measures to win further debt relief.
“The aim is to avoid spending at a level…that endangers macroeconomic stability, one of the triggers for (reaching the) completion point of the HIPC (Heavily Indebted Poor Countries) initiative expected this year,” the budget ministry said in a statement.

The HIPC debt relief scheme was launched in 1996 by the IMF and World Bank to help alleviate debt burdens on poor countries.

The ministry statement did not specify how it would amend the existing 2010 budget draft, which according to media reports envisages spending of around $6 billion.



Source: www.af.reuters.com