Despite the current crisis, the Congolese banking system is doing quite well, posting a balance sheet total of 6.3% and satisfactory development in other performance indicators, according to the central bank. The Republic of Congo is partly banking on the dynamics of the banks to revive the national economy.
The Congolese government is preparing an economic recovery plan which will devote a number of measures in favor of the banking system, in order to allow it to contribute much more effectively to the financing of the economy. Following the meeting of the National Economic and Financial Committee (CNEF), held on July 21 in Brazzaville, the authorities also decided to use the sub-regional financial market for the financing of the economy.
Overall, the Congolese economy, like other economies, is severely affected by the counter-shock of the health crisis linked to the coronavirus and the oil shock. “Based on the information we have collected, Congolese growth forecasts are down 9.8% and this difficult economic context will also be reflected in other macroeconomic aggregates, in particular the current account of the balance of payment which will have a deficit of 126.1 million, ”said the national director of the Bank of Central African States (BEAC), Michel Dzombala.
Due to underperformance in exports and imports, inflation is estimated at 2.8% this year, down from 1.8% a year earlier. The money supply in circulation will fall by 14.1% due to the sharp drop in its external counterpart, namely its net foreign assets. The currency coverage rate will decline by around 26%, but will still remain around the 20% standard that is required under the monetary cooperation agreement.
According to the national director of the BEAC, the recovery of the economic situation requires the implementation of the measures taken by the public authorities, the central bank and the Cémac Commission. A few weeks ago, the BEAC decided to inject 250 billion CFA francs into the community market, in addition to monetary easing measures, the widening of the range of bills admitted for refinancing and the improvement of conditions. discount on government bonds that are eligible for refinancing.
Note that the CNEF meeting on Tuesday was chaired by the Minister Delegate in charge of the Budget, Ludovic Ngatsé, in the presence of his colleague from the Plan, Ingrid Olga Ghislaine Eboucka-Babakas, and the governor of the central bank who attended by videoconference .
