The IMF's country representative Oscar Melhado said the international financial institution had refused a request to extend the expiring programme under which DRC has received half of the planned instalments.
The IMF sought information about a contract the government signed in June 2011 to sell a 25% stake in the public mining company Gecamines to Staker International, a company based in the Virgin Islands.
"The government had requested a six-month extension but we could not accept that," said Melhado.
The halt of the IMF facility, needed to bolster the country's foreign exchange reserves, also puts in jeopardy an US$80m loan from the African Development Bank.
"We recognise that the government has made progress on the macroeconomic front, on the independence of the central bank, on getting control on inflation and the budget, but regarding transparency of the mining sector we have strict conditionality which was not respected," said Melhado.
He added that the IMF was ready to hold talks with the government on a new programme to include reforms on state-held companies.
Source: AFP via I-Net Bridge
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
