Ivory Coast failed to issue local currency debt in March, while Senegal, Mali, Niger and Burkina Faso have cancelled or postponed bond issuance in recent weeks.
Tanoe said interest rates should be between 6.5% and 6.80%, instead of the 5.80% to 5.95% offered by governments currently. The country could also seek bilateral aid and funding from a consortium of banks, an official at the finance ministry told Reuters. He requested anonymity because he is not authorised to speak to the media.
"With the BCEAO tightening monetary conditions to contain elevated inflationary pressures and preserve FX reserves, the cost of funds for banks has increased," Kwapong said. Countries will have to seek bilateral assistance to avoid budget deficits and continue to finance projects, said Soualiou Fadiga, executive director of the regional stockbrokers association.
some of these countries rely too much on debt to fund the budget, kicking the can down the road for others to deal with. taking the funds to bolster their chances of winning another election so they can keep their hands in the pot.