Public debt: 2.9% growth in the quarter to March 2024

2024-07-29 07:32:02

• Net withdrawals and exchange rate changes involved

• List of loans signed in the past twelve months

• Repayment of domestic debt: Release of FCFA 231.53 billion

Left-handedOne of the sovereign missions of the Ministry of Economy, Finance and Perspectives is to manage the public debt. Its good management contributes to the proper functioning of the state. It is in this logic that the General Directorate of Finance and Public Accounting, which is attached to the Ministry, carries out quarterly statistics on the public debt. Last June, the agency published its second statistical bulletin of the year. It highlighted the state of the country’s public debt as of the end of March 2024. Compared to the end of December 2023, the debt increased by 2.9%. Of this, external debt accounted for 43.3% and domestic debt accounted for 56.7%. .

We can read in the Statistical Bulletin of the Ministry of Finance that “in March 2024, the total national public debt amounted to 7,148.29 billion CFA francs, compared to 6,947.9 billion CFA francs in the previous quarter, an increase of 2.9%”. The document detailing the components of the country’s public debt shows that this increase is caused by the increase in Burkina Faso’s outstanding external debt. At the end of March 2024, external debt increased by 4.4% to 3,097.52 billion CFA francs. “This increase can be explained by the combined effect of net withdrawals on external borrowing, which amounted to +112.68 billion CFA francs in the first quarter of 2020. 2024 and exchange rate changes (+13 billion CFA francs),” said the Ministry of Public Finance. At the end of the first quarter of 2024, the outstanding amount decreased by 88.4% to multilateral organizations; 8.3% to bilateral creditors; and 3.4% to commercial banks. The share of external debt that is affected by fluctuations in foreign currencies (excluding the euro) is estimated at 32.6%.

Decreased debt repayment capacity

As for the central government’s internal debt, its outstanding balance at the end of March 2024 was 4,050.77 billion CFA francs, up 1.8% from 3,980.84 billion CFA francs at the end of December 2023. According to the DGTCP, it is composed of 79.9% of market debt, especially treasury bills and bonds. In the first quarter of 2024, the sub-regional financial market mobilized 170.7 billion FCFA through the public issuance of securities, of which 93.9 billion FCFA were treasury bonds and 76.8 billion FCFA were treasury bonds. The ratio of outstanding debt as of March 31, 2024 to GDP at the end of December 2023 is 57.9%. In terms of central government debt repayments, payments from January to March 2024 amounted to 268.67 billion CFA francs, 9% lower than in the first quarter of 2023 (295.3 billion CFA francs). External creditors and internal creditors allocated 25.72 billion CFA francs (9.6%) and 231.53 billion CFA francs (90.4%), respectively. The breakdown of newly signed loans by sector in the last 12 months mainly benefited the “Transport and Infrastructure” sector (25.3%), “Agriculture, Fisheries and Forestry” (19.5%) and “Education” (12.7%).. A breakdown by sector shows that 42% of spending was mainly spent in the “transport and infrastructure” sector, 14.7% in the “water, sanitation and waste management” sector and 12.5% ​​in the “administrative sector.” ».

NK

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