Indexed Treasury Bills and Indexed Treasury Bonds in the Democratic Republic of Congo (DRC) play a crucial role in mobilizing public revenue for the Congolese government. Faced with the fall in the prices of mining products, the government uses these financial instruments to obtain the means necessary for its economic policy.
During the auction of dollar treasury bills on October 10, 2023, the government managed to mobilize a total amount of $37.112 million. Three bidders responded to this offer, which represents a coverage rate of 46.39% of the amount put to tender. The interest rate has been maintained at 11% and the duration of the financial operation is six months, with full repayment scheduled for April 9, 2024.
According to Ministerial Decree No. 007 of March 27, 2021, Indexed Treasury Bonds are short-term securities, negotiable in Congolese Franc, indexed to the exchange rate between the US dollar and the Congolese Franc. Their maturity is less than or equal to 12 months. Indexed Treasury Bonds, for their part, are medium and long-term securities, negotiable in Congolese francs, indexed to the exchange rate, issued for a maturity greater than 1 year.
These financial instruments allow the Congolese government to diversify its sources of financing outside of revenues from mining products. While the country’s financial authorities do a good job in mobilizing public revenue, issuing Indexed Treasury Bills and Indexed Treasury Bonds provides the government with greater flexibility to implement its economic policy.
In short, indexed Treasury Bills and Indexed Treasury Bonds are essential tools for mobilizing public revenue in the DRC. In a context of fluctuating prices of mining products, these financial instruments make it possible to diversify the government’s sources of financing and support its economic policy.