AID: Congo (MRB Dec 2001): Europeans disagree over co-operation package.

(MRB Dec 2001) At their General Affairs Council held on December 10, European foreign ministers were unable to agree upon a proposal from the Belgian presidency to fix a date for the signature of the DR Congo's National Indicative Programme. Euros 205 million have been earmarked from the Ninth European Development Fund. Despite the backing of France, Spain and Italy, the Belgian foreign minister Louis Michel was unable to convince the other partners that the time was ripe to resume co-operation with the DRC government.

At a subsequent gathering organised by the World Bank, the UN and donor partners it was agreed to organise another meeting in six months time, when some movement on the diplomatic front may have become apparent, together with "a satisfactory conclusion" to the IMF programme. This is likely to be a Consultative Group meeting.

The World Bank, IMF and African Development Bank (AfDB) presented a strategy to address the issue of the DRC's debt. Donors noted the challenges ahead - financing the settlement of arrears to the AfDB, resolving arrears to the Paris Club and multilateral creditors, and ensuring the sustainability of the debt burden over the medium term, as well as the DRC's capacity to remain current on debt service.

At the earlier EU foreign ministers' meeting European Commission officials - but also the Irish - argued that it was premature to take any decision on aid before the conclusion of the inter-Congolese dialogue, which is only due to start on January 28 in Sun City in South Africa.

The ...