On August 9, the Malian Treasury launched a bond issue of 270 billion CFA francs (410 million euros) to pay off debt payment arrears. A “daring” operation according to some analysts but nevertheless successful. The largest loan ever made by Bamako on the financial market of the West African Monetary Union (Umoa) a obtained the confidence of investors from the West African Economic and Monetary Union (UEMOA) with a subscription valued at 102%.
The transaction was financed by investors from all eight countries in the region. At the top of the donors involved, local actors (Malians) with 79.262 billion CFA francs, followed by Burkinabe investors with 60.8 billion and their Ivorian counterparts with 54.71 billion.
Mali: sanctions, inflation, budget… Old habits make life hard
To do this, the Malian authorities had launched a double issue. If the treasury support and resilience bonds, with a maturity of one year, reached 72.237 billion FCFA, the amount of similar stimulus bonds amounts to 205.134 billion FCFA, of which 98.40 billion with a maturity of three years and 106.7 billion with a maturity of five years.
Breath of fresh air
After Economic Community of West African States (ECOWAS) economic and financial sanctions were put in place in January, the ruling junta was deprived of any regional transactions. During this time, the Malian Treasury was unable to pay CFAF 236.1 billion in interest and capital payments.
Mali: ECOWAS lifts its economic and financial sanctions
With the lifting of the embargo and this successful return to the regional public securities market, the Malian authorities are giving themselves some breathing space. From now on, Bamako should be able to honor its commitments and thus avoid collapsing under the weight of the this.