(Bloomberg) -- The Republic of Congo plans to settle its internal debt to stimulate the economy, starting with 300 billion CFA francs ($542 million), or about a third of the amount the government owes currently, according to the deputy Finance Minister.

The money was mobilized by the so-called Brazzaville Club, which comprises three commercial banks in the central African nation, Ludovic Ngatsé said by phone. While 25% is reserved for small operators, the remaining three-quarters is intended for “large accounts, with a good-faith commitment on their part to inject the proceeds into major projects,” he said.

The economy of the highly indebted oil-dependent country will probably contract 8.6% this year and expand only 0.5% next year, according to International Monetary Fund estimates. The payment of domestic arrears will serve as an economic stimulus before President Denis Sassou Nguesso seeks to extend his 23-year tenure in March elections.

The Republic of Congo owes at least $6.77 billion to external funders, including $732 million to Glencore Plc, $966 million to Trafigura Group Ltd. and $2.23 billion to Chinese creditors.

While the government began a three-year, $449 million loan program with the IMF in 2019, talks are on hold because the IMF is seeking clarification on debts owed to China, government spokesman Thierry Moungalla said earlier this month.