Gabon was variously praised by financial and economic analysts for securing $ 800 million, or 458 billion CFA francs, in the international securities market on November 17, 2021. With a maturity of 10 years at an interest rate of 7%, the fund raised through this loan is designed to repay more than 90% of the remaining balance of the $ 736 million issue. , (420 billion CFA francs expiring in 2024 of 2013).
According to Gabon officials, raising these funds with international investors in the context of the health crisis associated with the Govt-19 epidemic proves the country’s charisma of making signatures possible to seduce markets. Three-year 2021-2023 agreement concludes with the International Monetary Fund (IMF) Re-compliance is one of the arguments played out in favor of donor subscriptions, ”the Ministry of Economy and Recovery welcomed.
⁇ Alpha and omega ⁇
This satisfaction of the government is far from being shared by all observers, as economist Mace Moussi condemns “the government’s approach to making massive debt the alpha and omega of its policy. The economy.” The trade deficit of $ 5.12 billion, or 2,785 billion FCFA by 2020, is the minimum suicide preference for a country that continues to grow, which it says is a “vicious circle.” About the development of the country.
At this point, he explains, “the Republican government’s success rate is 6.375% with the new, more expensive debt, including the interest rate of 7.7%, which is 62.5 basis points higher than the previous debt payer’s debt.”
Proponents of her case have been working to make the actual transcript of this statement available online. The loan at an interest rate of 8.2% is 6.375%, which is 182.5 basis points less than the capon taxpayers have to pay. Taking this aspect into account, the success of the 2021 eurobond is put forward because it “increases outstanding debt, prolongs maturity and increases the financial burden of absorbing an ever-growing portion of the national budget”.
In other words, Gabon is stuck in debt to pay off its debts, not to boost growth, which, according to officials, should happen by 2025. Faced with this severe debt, these analysts say the economy will not be able to restart. In its 2022 fiscal bill, the government will allocate $ 1169 billion for FCFA debt, which represents about 40% of the national budget for 326 billion public investment or only 11% of the budget, with the remaining 49% allocated to the budget. For functions.
Gabon, which had a growth rate of 3.9% in 2019, entered a recession with real GDP growth of 2020 -1.3% due to the epidemic, and now expects average growth of 2.9% due to the post-2021-2023 Govt. Economic stimulus measures.