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 (…

Sticks in the wheels of Louis Garneau

The Québec sports equipment manufacturer Louis Garneau, in debt of $ 32 million, took shelter from its creditors on Tuesday and is actively seeking new investors. No less than 66 workers at the Saint-Augustin-de-Desmaures head office near Quebec City lost their jobs during the year. "Today there is a lack of liquidity that we have. It’s not bankruptcy, it’s protection. It is a law that exists in Quebec to protect us, to settle our creditors, "explained the founding president of the company, Louis Garneau, at a press conference Tuesday afternoon.

Louis Garneau

The trouble started 36 months ago, he said, when two of his biggest international clients went bankrupt. This has put significant pressure on the company's liquidity, leading to late payments due to many suppliers. His finance team completely left him behind. He is currently looking for "the best chief financial officer" in the province.

By coming under the protection of the Bankruptcy and Insolvency Act, the company, which has been in business for 37 years, intends to make "strategic and operational changes" to become profitable in the long term.

Raymond Chabot Inc. has been mandated to oversee the restructuring process. A recovery plan will be presented to creditors and financial partners.

However, the company's international activities in Mexico, the United States, France and Asia are not affected. The supply will continue, but with a reduced team. "There is no question of giving up," says Garneau.

As for the 66 people who lost their jobs on Tuesday morning, these "redundancies are temporary," promises Mr. Garneau, saying he is very "sorry" and "sorry" for having made this decision. They will be re-employed as soon as possible. "We had no choice but to work with a smaller team. "

Five months ago, the company already had to close its textile division and cut 46 jobs at the Saint-Augustin-de-Desmaures factory.

"This is the most difficult race I have participated in," said the former cyclist, explaining that he had done everything to go up the hill. He even invested in the business by tapping into his personal finances, but to no avail.

Louis Garneau used the press conference to send a message across the province: "We are looking for investors to help us complete our funding. He even said he was ready to sell the business, but only if it fell into the hands of a Quebec investor.

“It would have been easy to be a multimillionaire and sell to foreigners […], but I decided, with my team, to fight and do everything to keep the business in Saint-Augustin”, he lets he fall in a firm tone.

In the eyes of Charles de Brabant, executive director of the Bensadoun School of Retail Trade at McGill University, Louis Garneau made the right decision by sheltering from its creditors. "It will certainly allow him to bounce back. The problem does not come from the brand or the quality of the products offered, according to him, but simply from its two main customers who went bankrupt.

Charles de Brabant even points out that the retail sector has been doing well for a few years and has experienced significant growth. However, companies still need to succeed in facing the ever-increasing competition in the sector. "Today, being good in the community is not enough to survive. You have to be very good, see the best, ”he says.

Louis Garneau is not the only company in this situation. Sporting goods retailer La Cordée also filed for bankruptcy and insolvency protection about ten days ago. The chain of stores is indebted $ 22 million and owes 75,000 to Louis Garneau.