Republic of Congo: Selected Issues

This Selected Issues paper focuses on the macroeconomic impacts of government domestic arrears in the Republic of Congo. Authorities have intensified mitigating efforts including improving fiscal space to accelerate repayment, improving debt transparency to allow for rapid recognition of arrears, and launching major reforms to improve prevention. Looking ahead, maintaining the pace of reform will be crucial. Priorities include further strengthening of fiscal buffers to ensure timely repayment, enhance debt coverage and transparency reforms to allow a holistic view of public debt, accelerating debt and PFM reforms to allow better management and control. Repayment efforts have accelerated but have failed in reducing arrears stock due to the inclusion of new stock of arrears. The effective implementation of the restructuring of the debt management office and related reforms especially the hiring of staff and their training to improve capacity and the operation of a new procedure manual will be crucial to enhance the effectiveness of the debt management office.