Democratic Republic of the Congo: Fourth Review Under the Extended Credit Facility, Request for Modification of Quantitative Performance Criterion, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for the Democratic Republic of the Congo

This paper presents Democratic Republic of the Congo’s Fourth Review under the Extended Credit Facility, Request for Modification of Quantitative Performance Criterion, and Financing Assurances Review. Ongoing macroeconomic pressures and looming risks call for prudent fiscal policy to preserve fiscal sustainability and macroeconomic stability, supported by tighter monetary policy to reduce inflationary pressures. The program remains focused on fiscal consolidation through mobilizing domestic revenue, curbing nonpriority spending and enhancing spending efficiency; building reserves buffers and capacity for policy formulation; and strengthening governance. The fiscal deficit is expected to narrow in 2023, which will support monetary policy in curbing inflation. Reforms to strengthen the rule of law and the judiciary system, curb corruption, and improve transparency in the mining sector and public finances are critical to improve the business climate for private investment and economic diversification.