US bill seeks to block IMF aid to C. African nations

US lawmakers have introduced a bill that could block IMF aid to Central African nations unless they reverse a rule requiring international oil companies (IOCs) to deposit environmental funds in regional central bank accounts.

Republican Representatives Bill Huizenga and Dan Meuser filed the bill in response to new Bank of Central African States (BEAC) rules. The regulation forces IOCs to move $5–10 billion in clean-up funds to BEAC-controlled accounts. These funds are currently held in foreign banks and reserved for post-production restoration.

IMF accused of misleading region
The bill accuses the IMF of misleading Central African states by not clarifying that these funds won’t count as foreign exchange reserves. It warns that this puts tens of billions in IOC investments at risk.
The rule was approved by the six-nation Central African Economic and Monetary Community (CEMAC) — Cameroon, Gabon, Chad, Equatorial Guinea, Central African Republic, and Republic of Congo — at a December 2024 summit. It takes effect May 1, with penalties of up to 150 per cent for non-compliance.

Cameroon’s Biya warns of economic fallout
Cameroon’s President Paul Biya warned of “disastrous consequences” unless action is taken to boost reserves. A March BEAC report said the bloc may also raise the 35 per cent repatriation rate for operational spending.
The IMF, which supports the BEAC rule, said it encourages dialogue. “Staff stands ready to assess the nature of restoration funds for oil sites,” a spokesperson told Reuters.
French oil firm Perenco said it is negotiating with regional authorities and is already complying with repatriation rules. Other firms — including Marathon Oil, Chevron, Kosmos Energy, and Vaalco Energy — are in talks with Equatorial Guinea’s finance ministry, a source said.
If passed, the bill would halt US Treasury backing for IMF programmes involving CEMAC unless the IMF confirms the funds won’t be counted as reserves. This could threaten IMF aid to countries like Cameroon and Congo.
In a March report, the IMF warned that without reforms, some CEMAC states could see debt-to-GDP ratios near 100 per cent and reserves depleted by 2029, risking financial instability.

Attribution: Reuters
Subediting: M. S. Salama