The issuance of indexed treasury bills and indexed treasury bonds of the Democratic Republic of Congo (DRC) experienced a pause in July 2023, due to tax obligations related to the payment of tax on profit and profit. However, the Congolese government did not fail in its duty towards its internal financial partners, by reimbursing an amount of 173.2 billion Congolese Francs in respect of the internal public debt.
According to the note on the economic situation of the Central Bank of Congo, this reimbursement includes 83.6 billion Congolese Francs for indexed treasury bills and 83.6 billion Congolese Francs for indexed treasury bonds. These securities, although issued and subscribed in Congolese francs, are reimbursed at their value indexed in dollars at the time of subscription.
Since October 2019, the government of the DRC has launched treasury bonds to diversify its sources of financing and to cope with high public expenditure. These debt securities repayable in the medium or long term are issued by the State’s public treasury, either by way of syndication via a group of financial establishments, or by way of adjudication by auction.
The next issue is scheduled for August and September 2023, where the Treasury intends to raise an aggregate amount of 470.0 billion Congolese Francs on the domestic market. This approach aims to maintain a financial balance and meet government needs.
By diversifying its sources of financing, the Congolese government demonstrates its commitment to responsible management of its domestic public debt. These issues of indexed treasury bills and bonds also help attract investors and strengthen confidence in the national economy.
It is essential to closely monitor the evolution of this situation to understand the impact on the Congolese economy and the prospects for long-term growth. Financial stability and transparency in the management of public debt are key elements to ensure the economic sustainability and development of the DRC.
In conclusion, the DRC is continuing its efforts to diversify its sources of financing by issuing indexed treasury bills and bonds. These initiatives demonstrate the Congolese government’s commitment to responsible management of domestic public debt and strengthen investor confidence in the national economy. It is crucial to closely monitor the evolution of this situation to understand its impact on the Congolese economy in the long term