Reuters reported that Democratic Republic of Congo would downsize a controversial infrastructure for minerals deal with China, winning IMF assurances it could be in line for swift debt relief.

The International Monetary Fund feared the contract to use Congo's mineral reserves as a guarantee for infrastructure projects could plunge the African nation deeper into debt and had delayed forgiveness of most of the USD 10 billion Congo owes. The changes will narrow to USD 6 billion from USD 9 billion the value of the deal with China, which has overtaken the United States as Africa's top trading partner.

Mr Brian Ames IMF mission chief for Congo said that "During our visit the authorities told us that the partners have accepted the amendments in the project of the Sino Congolese agreement including the removal of the government's guarantee on the mining project."

Mr Jean Claude Masangu governor of Congo central bank said that it would suspend a USD 3 billion infrastructure phase of the project that also raised IMF concerns. He added that "When the IMF services confirm that the revised agreement is compatible with the viability of the debt, the Congolese authorities will be in measure to solicit financial assurances for a new IMF program from the lenders of the Paris Club."

He added that "The administrative council of the IMF will then rapidly be able to examine the request for a new 3 year Heavily Indebted Poor Countries program. Today, we have swept away all the problems that the Chinese contract could pose."

(Sourced from www.reuters.com)