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 (…

Debt moratorium on African countries: private banks demand guarantees

While controversy is over whether or not to cancel the debts of poor countries, especially those in Africa, the big private banks want more confidence to adhere to the one-year moratorium approved by the G20 countries. Through the Institute of International Finance (IIF), they have made known their conditions for freezing the private debt of these states. Taking into account the complex nature of the private debt of the poorest countries in the world which would benefit from a one-year moratorium, the Institute of International Finance (IIF), lobby grouping 450 of the world's largest banks, issues reserves.
Debt moratorium on African countries: private banks demand guarantees

While welcoming the willingness of international organizations to support the least developed states in this period of the covid-19 pandemic, the IIR, through the voice of its president, Timothy D. Adams, addressed to the presidents of the IMF, the World Bank and Paris Club, a correspondence in which he calls for caution.

According to the position of the institution reported by Rfi, the agreement of a year of moratorium on said debts will not be easy for private creditors. For good reason, says the president of the IIR, "the lending banks have obligations towards their customers, which they must respect".

In addition, "the private debts contracted by the States are many and varied", he specifies. Believing that there could be no simple solution, Timothy Adams advocates an intelligent and open dialogue between creditors and debtors.

To this is added a policy of transparency on the part of indebted countries, based on good faith and the respect of all creditors. Beyond that, he warns the countries that have borrowed on the financial markets.

According to him, these countries as a whole, must have in the idea that the moratorium is not without consequences on their future access to private financing. For the record, during this year 2020, the 76 poorest countries on the planet, including forty African countries, should repay a total of 32 billion dollars.

But, because of the macabre effects of the coronavirus, Paris obtained the moratorium on the level of bilateral and private creditors, that is to say a total of twenty billion dollars. China, one of Africa's biggest creditors, has accepted this principle.

The World Bank, to which these countries owe 12 billion claims, has also declared itself in favor of the moratorium on their debt. For the time being, the majority of the African states concerned remain divided between "legitimate over-indebtedness" and a complete cancellation of their debt.