KINSHASA, (Reuters) – Chinese companies have signed an amended $6 billion infrastructure and loan deal with Democratic Republic of Congo, China’s ambassador said yesterday, a step seen clearing the way for debt relief for the African nation.
The International Monetary Fund (IMF) had feared the contract, which uses Congo’s mineral reserves as a guarantee for infrastructure projects, could plunge Congo deeper into debt.
The size of the deal was cut in August to $6 billion from an original plan of $9 billion, and Congolese government guarantees connected with the mining aspect of the agreement were taken off the table.
The IMF had delayed forgiveness of most of the $10 billion Congo owes pending a revision of the deal.
