Gabon has the backing of around 10 financial institutions to extend the maturities of regional market debt and access fresh financing, the Central African oil producer’s public accounts ministry said on Monday.
Brice Oligui Nguema was elected president of Gabon earlier this month in a poll many hoped would end a year and a half of political uncertainty following the coup he led against former president Ali Bongo.
Gabon, which saw its World Bank disbursements suspended in January over mounting arrears, is facing an acute squeeze on liquidity that has left it increasingly reliant upon regional capital markets to meet financing needs.
The public accounts ministry said the plan will extend average maturities on 592 billion CFA francs ($1 billion) worth of treasury bills from 2.3 years to six years through what it said would be “voluntary exchanges with banks”.
It will also convert 473 billion CFA francs of short-term government loans into government securities and unlock access to 338 billion CFA francs in new financing.
“The Republic of Gabon wanted to significantly improve the profile of its public debt, reduce the refinancing risk of its outstanding debt, and thus increase its room for manoeuvre in the medium term,” the ministry said in a statement.
Gabon’s total outstanding domestic debt amounted to 2.196 billion CFA francs in February, the ministry said, including 1.741 billion CFA francs with near-term maturities issued on the regional Central African market.
