During a press conference held at the headquarters of the Gabonese Strategic Investment Fund (FGIS) on Monday, the Minister of Economy and Participations, Mays Mouissi, assisted by the Director General of Debt (DGD), Jean Gaspard Ntoutoume Ayi, gave further explanations on the ins and outs of the early redemption operation of half of the Eurobond of the Gabonese Republic, contracted in 2015 on the financial market international. The deadline for repayment of this debt, around 400 billion CFA Francs, was set for June 2025, therefore next year, while Gabon has since cleared the payment of debt service, that is to say the interest linked to this debt from its creditors.
We will note from the main explanations of the Minister of Economy and Participations that the early repurchase of half of this debt, almost 200 billion CFA Francs, makes it possible to envisage the payment of said debt in a relatively distant horizon, to mobilize and to direct State resources and budget towards financing urgent and pressing development projects.
It is also the telling proof of the solvency of the State and its capacity to repay its agreed debt, vis-à-vis its external creditors in particular, to which Gabon can therefore once again return serenely, in order to continue to seek loans necessary to finance its development projects, we learned.
Another advantage, the positioning at the heart of this operation, of the administration (in particular the services of the DGD) and local banking players, in particular Attijariwafa Bank (former UGB) and Ecobank, which is an added value. The Gabonese State will now, through the involvement of Gabonese banks, have to repay the sums due at relatively low rates and in local currency (CFA Francs), thus escaping fluctuations in the dollar, the currency in which the Eurobond had been issued in 2015.
For the Head of the department in charge of the Economy, “the buyout objective, concluded in less than two months, on November 14, was fully achieved with the participation of more than two hundred and sixty international investors, for an amount of 275 billion Francs, or more than 156% of the expected amount »rejoiced Mays Mouissi.
And the member of the government boasts “very appreciable performance of this buyback operation, compared to similar operations carried out since the start of this year 2024 in comparable countries in Africa and on other continents”he said
Mays Mouissi nevertheless informed that he is unable to say what concrete purpose this debt of 400 billion CFA Francs contracted in 2015 will have been used, in terms of construction and acquisition of socio-collective equipment or to give any precise indication on any line of allocation of this loan, having found no trace upon his arrival at the head of the Ministry of the Economy and participations.
M.-O. Cute
2024-11-19 15:39:00
#loosen #grip #economy #state #budget
What are the specific developmental projects that Gabon plans to fund with the resources saved from the Eurobond redemption?
**Interview with Mays Mouissi, Minister of Economy and Participations of Gabon**
**Interviewer:** Thank you for joining us today, Minister Mouissi. Can you provide an overview of the recent decision to redeem half of Gabon’s Eurobond ahead of its maturity?
**Mays Mouissi:** Thank you for having me. The decision to early redeem half of our Eurobond, which amounts to approximately 200 billion CFA Francs, is strategic. It allows us to extend the horizon for managing our outstanding debt, which was initially due in June 2025. This move not only signifies our commitment to debt management but also enables us to allocate more of our state resources towards urgent developmental projects that are crucial for our citizens.
**Interviewer:** How does this early redemption impact Gabon’s relationships with international creditors?
**Mays Mouissi:** This operation reinforces our solvency and demonstrates our capacity to fulfill our financial obligations. By showing that we can manage our debt effectively, we instill confidence in our external creditors. It gives us a strong position as we look to secure future loans for development, ensuring that Gabon remains an attractive destination for investment.
**Interviewer:** What are the benefits of involving local banks like Attijariwafa Bank and Ecobank in this operation?
**Mays Mouissi:** Involving local banking institutions is a significant advantage. By repaying these debts at lower rates in local currency, we protect our economy from currency fluctuations and reduce our reliance on foreign banks. This collaboration not only strengthens our financial independence but also fosters the growth of our local banking sector.
**Interviewer:** How do you foresee this financial maneuvering impacting the economy and the lives of ordinary Gabonese citizens?
**Mays Mouissi:** This is about more than just numbers; it’s about enhancing the quality of life for our citizens. By redirecting funds that would have gone to service our debt towards infrastructure and social programs, we aim to foster economic development and create jobs. Ultimately, our goal is to build a sustainable future for Gabon that benefits all its residents.
**Interviewer:** Thank you for your insights, Minister Mouissi. Is there anything else you would like to add?
**Mays Mouissi:** Just that we are committed to transparent governance and prudent financial management. We believe these steps are key to promoting sustainable development in Gabon, and we look forward to sharing progress with our citizens and stakeholders.
**Interviewer:** Thank you, Minister. We appreciate your time and look forward to seeing the positive impacts of these initiatives on Gabon’s economy.