+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

PRINTER FRIENDLY

Country Risk Service Congo (Brazzaville) 4th Quarter Updater

  • ID: 4721001
  • Country Profile
  • December 2019
  • Region: Democratic Republic of Congo, Republic of Congo
  • 19 Pages
  • The Economist Intelligence Unit
1 of 2
Sovereign risk is CCC-rated. Following sustained reform efforts and fiscal consolidation, the government secured an IMF agreement in July 2019. Some debt has been renegotiated, although Congo has a large external debt stock and the risks relating to this are exacerbated by the opacity of the debt stock, weak institutions and low foreign reserves.

The currency risk rating is BB. Bank credit to the private sector is falling, as economic growth, though recovering, remains sluggish, particularly outside the oil sector. Most export receipts come from oil, and, with global oil prices on a downward trend, this is also weighing on the score slightly. However, the CFA franc is pegged to the euro, which provides an element of currency stability.

Banking sector risk is CCC-rated. The non-performing loan ratio is high, having risen during the recession years of 2016-17. Government arrears to private suppliers are another problem, as affected firms fall into loan arrears themselves. This is a major drag on the rating. However, the ratio of foreign-exchange reserves to short-term debt has improved.
Note: Product cover images may vary from those shown
2 of 2
Country Risk Service Congo (Brazzaville) 4th Quarter Updater

Risk assessment
Sovereign risk
Currency risk
Banking sector risk
Political risk
Economic structure risk

Definitions
Sovereign risk
Currency risk
Banking sector risk
Political risk
Economic structure risk
Overall country risk

Central scenario for 2020-21: Political stability

Central scenario for 2020-21: Election watch

Central scenario for 2020-21: International relations

Central scenario for 2020-21: Policy trends

Central scenario for 2020-21: Fiscal policy

Central scenario for 2020-21: Monetary policy

Central scenario for 2020-21: Economic growth

Central scenario for 2020-21: Inflation

Central scenario for 2020-21: Exchange rates

Central scenario for 2020-21: External sector

Key risk indicators

Ratings summary

Quarterly indicators

International assumptions summary

Economic structure

Public finances

Exchange rates, interest rates and prices

Financial sector

Current account

International liquidity

Foreign payment and liquidity indicators

External trade

External financing requirement

External debt stock

External debt service
Note: Product cover images may vary from those shown
Adroll
adroll