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 (…

Partial unemployment partly funded by employers: "We don't have enough work", worries a business manager

"As long as aeronautics does not start again, when it is the lung of French industry, we will not have an order book that will wake up," explains the manager.
 
Partial unemployment partly funded by employers: "We don't have enough work", worries a business manager

Increasing delinquencies

For the manager of Como, "the objective is to hold out for a long time and have cash that will last until the recovery." However in matters of treasury, what worries Sophie Demesse is the increase in arrears. "I had to cry with a very large client for him to be able to pay me, so you have to use means," she worries. "I am a very small company with almost correct cash flow. I have three months cash, big companies have a year or two ahead of them. "

Sophie Demesse heads COMO, a small company specializing in precision mechanics which employs seven people. All are on partial unemployment, either two days a week, or full time. From June 1, Sophie Demesse will have to pay 15% of the compensation paid to the employee, against zero previously.


The measure was announced by the Ministry of Labor in a statement Monday, May 25. For employees, no change: they will continue to receive the same level of compensation. But their employers will now have to finance part of the short-time working wages. The only exceptions are the sectors subject to legislative restrictions due to the health crisis.

A cost that can endanger businesses

Sophie Demesse calculated what it was going to cost her: "Concretely for Como, this will represent roughly an additional cost of 2,000 euros per month, she specifies. It seems ridiculous for a company but 2,000 euros per month multiplied by six months, a year, it can endanger the business. " Sophie Demesse speaks of this reduction in the canopy of partial unemployment as a disaster because the resumption of activity is very hard for her company, which sells parts to the aeronautical industry, and indirectly to the automotive industry.

We are still at -60% of turnover and backlog to date. We don't have enough work.
Sophie Demesse, CEO of Como

 "As long as aeronautics does not start again, when it is the lung of French industry, we will not have an order book that will wake up," explains the manager.



Increasing delinquencies

For the manager of Como, "the objective is to hold out for a long time and have cash that will last until the recovery." However in matters of treasury, what worries Sophie Demesse is the increase in arrears. "I had to cry with a very large client for him to be able to pay me, so you have to use means," she worries. "I am a very small company with almost correct cash flow. I have three months cash, big companies have a year or two ahead of them. "

There are many companies that have decided not to pay. What do we do ? I stop delivering? It becomes very tense. Sophie Demesse

Avoid layoffs, a priority

Between the rise in arrears and the reduction in state aid for short-time working, the Como leader hopes not to have to lay off workers while waiting for the recovery. Keeping employees is a priority for her. "In the industry we have skills that are increasingly scarce, explains Sophie Demesse. There are people, if I lose them, I don't say that I lose the market, but to replace them it takes several years I really need to keep them if I want to keep the business going. " The leader believes that her business will not resume completely until 2021, at best.

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