(Ecofin Agency) - Preferring to borrow from the regional market as cost of international loans soared amid global strengthening of US dollar, Cote d’Ivoire has decided to issue no new Eurobond, Bloomberg reported on August 29, citing official sources.

“We are planning on issuing FCFA550 billion ($938 million) on the regional market before the end of the year, in addition to the FCFA150 billion sukkuk issued earlier this month,” said Ivorian Minister of Finance, Adama Koné. “We last issued a eurobond just before the US dollar soared. Now, it is extremely expensive to issue a Eurobond,” he added indicating that going on the international market would be considered only in the case of liquidity shortage in the regional market.

In 2014 and 2015, Cote d’Ivoire issued Eurobonds of $750 million and $1billion respectively.

Since February 2015 when Cote d’Ivoire issued its last Eurobond, the US dollar appreciated by 7.4% to the Euro to which the CFA franc is anchored. “Cote d’Ivoire does not wish to see its public debt increase above 41% of GDP, and that is why we don’t plan to lend from the international market,” Koné highlighted.

According to him, WAEMU’s economic driver maintains its growth forecast for 2016, at 9%, despite cocoa output falling and a deteriorating security environment following an Al-Qaida-led terrorist attack at a popular beach last March.

In July 2016, the International Monetary Fund (IMF) scaled down its growth forecast for Cote d’Ivoire in 2016 to 8% from 8.5% as agricultural production slumped.