(Ecofin Agency) - The Ivorian government said it will pay CFA620.2 billion ($1.1 billion) to about twenty private international creditors which are either banks or private investment institutions, in 2021, we learned. Of this amount, CFA409.5 billion will be earmarked for the payment of interest and CFA210.7 billion for the principal.
The interest is inflated by the commitment to repay the sums due under the Eurobonds issued by Côte d'Ivoire. Behind these international borrowings are numerous investment structures that mobilize financial resources to make investments in the international capital markets. The Ivorian government is authorized to pay them up to CFA267.5 billion.
Among the international banks that will become part of the Ivorian financial system is the investment subsidiary of Société Générale, the country's historical financial partner. But, there are also international banks such as the Chinese ICBC, Credit Suisse, the Japanese Mutsui Financial Group, or the Russian VTB Bank.
The Ivorian government is authorized to pay back CFA1,060 billion to international investors. In addition to private actors, there is also a group made up of multilateral donors. Côte d'Ivoire must also repay the equivalent of CFA1,076.3 billion of domestic debt. Nearly CFA402 billion is reserved for the repayment of subscribers to its various bond issues.
In total, the Ivorian government's debt service for 2021 will be CFA2,132 billion. This represents 25.4% of the overall budget for the fiscal year. The share that will be repaid to private international creditors is almost 7.6%.
The country continues to benefit from a positive sentiment from international investors. However, its ability to repay them remains dependent on the global commodity situation.