Congo - Economic and Financial Reform Support Programme (PAREF)

The Economic and Financial Reform Support Programme (PAREF) follows ongoing dialogue with the Government and the main development partners active in Congo, including the IMF, since April 2016 against a backdrop marked by a deterioration in the country’s fiscal situation as a result of the steady decline in oil prices. The operation meets the Republic of Congo’s need to reinforce the foundations for diversified and sustainable growth. This is the first phase of a programme-based series of two General Budget Support (GBS) operations covering the 2019 and 2021 period as scheduled in the CSP to support the implementation of reforms aimed at consolidating public finance and the structural transformation of the economy. The proposed operation will also provide the Authorities with the necessary resources to cushion the financial shock caused by the recent fall in revenue following the decline in international oil prices. It will also help to facilitate the smooth execution of the national budget. The Programme is designed around three complementary components to address the following two major constraints: (I) reinforce fiscal consolidation and improve public finance management in order to restore macroeconomic stability; and (II) support economic recovery. Implementation of some reforms planned under the programme will also be supported by the Bank’s Institutional Support Project (PAGFIP) and will contribute to the deepening of reforms aimed at improving public finance governance.