BCEAO releases $ 6 billion for West African economies

The BCEAO has just made a liquidity injection of 3350 billion FCFA ($ 6 billion) at a fixed rate of 2% in favor of several banks of the UMOA. A total of 87 financial institutions participated in the operation. The Central Bank of West African States (BCEAO) made a further injection of liquidity to its member countries last week. In total, 3350 billion FCFA ($ 6 billion) were disbursed by the institution.

During the auction on September 14, 87 banks in the sub-region obtained an injection of liquidity at a fixed rate of 2%. With more than 1000 billion FCFA ($ 1.8 billion), it is the Ivory Coast which obtained the most important financing, ie 31% of the funds injected.

It is followed by Senegal with more than 580 billion FCFA ($ 1 billion), Mali with 466 billion FCFA (835 million $), Benin with 434.5 billion FCFA (777 million $) and Burkina Faso with 318 billion FCFA. ($ 569 million). Niger with 241.6 billion FCFA ($ 432 million), Togo with 219 billion FCFA (…

Southern European bosses call on EU to take further emergency measures

The Economic Cooperation Council is proposing fifteen emergency measures for European businesses to the European Council. Measures to mitigate the short-term effects of the health crisis caused by the Covid-19 and in the long term with the desire to develop Europe's strategic autonomy.

Economic Cooperation Council advises European Council on CoronaVirus

It is activated for Thursday's video conference of the heads of state and government of the European Union (EU). In a note to the President of the European Council Charles Michel the Council for Economic Cooperation (CCE), an organization bringing together industrialists from southern Europe - including Airbus - and under the patronage of French governments, Italian, Spanish and Portuguese, proposed a series of fifteen emergency measures to bring to European companies. He wants European governments to give a strong response to the economic emergency caused by the Covid-19 health crisis.

This proposal comes as European finance ministers failed to agree on Tuesday on new coordinated measures to support the economy, leaving it to their leaders to decide on Thursday the best options in the face of the shock caused by the coronavirus. . In this note, the Economic Cooperation Council presents fifteen proposals: five to mitigate the short-term effects, five others to mitigate the effects in the medium term, and, finally, the last five to mitigate the effects in the longer term.

Among the emergency measures, the CCE wants Europe to quickly mobilize a financial envelope by drawing from the unused credits of the European Structural and Investment Funds (up to 7.5 billion euros). Loans that would partially respond to this crisis, in particular the capital needs of companies. The CCE calls on the EIB and the European financial institutions to facilitate the obtaining of liquidity for businesses to enable them to bear their costs, in addition to the resounding announcements from the European Central Bank (ECB). He also pleads for help for companies, including SMEs. In this context, it recommends to support them a reduction in key ECB rates and to relax the capital requirements imposed on banks by suspending the Basel 3 rules. This could facilitate lending to businesses, including SMEs.

The council also supports the measures of certain member states (Italy, France, Spain) which have taken measures to protect strategic assets by preventing takeovers by foreign predators. The European Commission must be particularly vigilant, he said. Finally, it asks States to ensure the efficiency of supply chains in the field of freight transport.

To protect businesses in the medium term, the Economic Cooperation Council wishes to set up specific measures to protect investments in the field of Research and Development (R&D), whose credits will be the first to be cut by businesses . However, the Council considers that it is essential to support these investments so that Europe remains competitive in certain industries of Asian countries and the United States. He also wants the European competition authorities to quickly assess and authorize member countries' support plans for their businesses ... while monitoring the aid received by non-European businesses.

The Council recommends to the Member States operations to recapitalize key private companies to avoid bankruptcies detrimental to the whole economy. It wants to adopt "as quickly as possible and with the highest ambition possible" the new multi-annual financial framework (MFF). This would allow the European Union, according to the CCE, to send a clear signal of its will to revive the economy in Europe. The Council considers it important to provide financial support to industries in the field of energy transition within the framework of the "Green Deal".

Finally, all the measures recommended for the long term are measures to improve Europe's strategic autonomy. Because, according to the Council, this health crisis once again shows the excessive use of third countries to insure certain critical parts of the supply chain, notably in the pharmaceutical and health sector. Beyond this crisis, he pleads for the establishment of a real strategic autonomy in other key European sectors.