Democratic Republic of the Congo: Second Review Under the Extended Credit Facility Arrangement, Requests for a Waiver of Nonobservance of a Performance Criterion, Modification of Quantitative Performance Criteria, and Financing Assurances Review; and First Review Under the Resilience and Sustainability Facility Arrangement and Request for Rephasing of Access-Press Release; Staff Report; and Statement by the Democratic Republic of the Congo

This paper discusses Democratic Republic of the Congo’s (DRC) Second Review under the Extended Credit Facility Arrangement, Requests for a Waiver of Nonobservance of a Performance Criterion, Modification of Quantitative Performance Criteria, and Financing Assurances Review; and First Review under the Resilience and Sustainability Facility Arrangement and Request for Rephasing of Access. The DRC’s economy has remained resilient despite the persistence of the armed conflict in the eastern part of the country, which continues to exert significant pressure on public finances. A cautious, data-dependent monetary policy is appropriate. High uncertainties underscore the importance of carefully monitoring liquidity conditions and standing ready to adjust monetary policy as needed. Measures to improve monetary policy transparency and communication and strengthen central bank autonomy would help to anchor expectations. The authorities have kept momentum on structural reforms, and all but one performance criteria were met. Looking ahead, sustained fiscal discipline, stronger coordination between fiscal and monetary policies, and accelerated structural reforms remain critical.