Côte d'Ivoire borrows carefree from financial markets
The administrative towers in the Plateau district in Abidjan.
ISSOUF SANOGO / AFP
Text by: RFI Follow
3 min
Regarding debt, Abidjan is one of the good students.
Côte d'Ivoire has just borrowed one billion euros on the financial markets, what is called a Eurobond issue.
And investors have flocked to lend to the country considered relatively safe by investors.
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Not all countries are deadbeats, far from it.
The bond issue launched by Côte d'Ivoire at the end of November was a resounding success.
Sign according to the Minister of the Economy and Finance, Adama Coulibaly, that the country is attractive: “
For nine years now, we have had an economy that is growing at a sustained rate, and this is reassuring.
"
While the IMF is worried about a new over-indebtedness in Africa, Côte d'Ivoire escapes this phenomenon.
"
No, the debt of the Ivory Coast will not jump, because today we have a debt ratio of less than 40
%
", reassures the minister.
5% interest rates
With a historically low interest rate, 5% against 6.5% on average for this type of loan, Abidjan will use part of the money to repay old debts.
This refinancing of costly debt by less expensive debt is currently at the heart of discussions between Africa and its donors, private or public.
"
We have discussed these issues, including the possibility that the IMF can make available SDR
[special drawing rights ed]
to subsidize interest rates and bring them a little lower
, said Adama Coulibaly
.
That is to say that in the context of the operation of the Ivory Coast we are talking about, we are at 5% and if there was an allocation of SDRs that would allow us to improve, we could have a rate A little lower.
"
In the meantime, Côte d'Ivoire is sending a reassuring signal to those who fear a funding crisis in Africa.
The money is starting to come back.
►Also listen: Africa economy - African debt: do not forget the domestic debt
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