/ 1 January 2002

DRC’s back covered by SA bridging loan

South Africa’s National Treasury has given the war-torn Democratic Republic of Congo a bridging loan to the equivalent of R760-million to help them country clear its International Monetary Fund (IMF)liabilities.

According to a Cabinet statement, issued after its fortnightly meeting on Wednesday, the loan would allow the DRC to, once again, draw resources from the IMF’s poverty alleviation facility.

The loan was for 75-million Special Drawing Rights (SDR) — a currency term used by the IMF and World Bank for international aid transactions.

”This will help clear the DRC’s overdue obligations with the IMF and allow that country to draw resources under the IMF Poverty Reduction and Growth Facility,” government representative Joel Netshitenzhe said in the statement.

Treasury officials could not be immediately reached for comment. – Sapa