US lawmakers want to block IMF support for Central Africa due to oil fund dispute

From Yahoo Finance: 2025-04-09 12:45:00

U.S. lawmakers introduce legislation to block IMF support for Central African countries, aiming to protect billions set aside by oil companies for environmental cleanup. Central African monetary authorities push for tighter capital controls on extractive industries, sparking a standoff with foreign investors. The funds, estimated at $5-$10 billion, are currently held in foreign banks but could be moved to regional institutions to boost economies and foreign currency reserves.

The IMF supports the move, with penalties for non-compliance set to take effect from May 1. Oil companies like Perenco are negotiating with regional stakeholders to comply with regulations before the deadline. The proposed U.S. legislation could impact IMF support for countries like Cameroon and the Republic of Congo, which are heavily reliant on the fund’s assistance. IMF warns of economic fragility in the CEMAC region, with debt levels nearing 100% of GDP and dwindling reserves posing a threat to financial stability.



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