Securitization of Congo's Domestic Debt

The issuing State receives Special Negotiable Debt Certificates to pay 360 billion FCFA
31 Dec, 2019

As part of the securitization operation of the State's domestic arrears, the Benin’s Management and Intermediation Company (SGI), arranger approved by the Regional Council of Financial Markets of the West African Economic and Monetary (UEMOA), officially submitted the Special Negotiable Debts Certificates to the Congolese State’s Monetary Authority.  

 

The Minister of Planning, Statistics and Regional Integration, Ingrid Olga Ghislaine Ebouka, representing her colleague, Calixte Nganongo, in charge of Finance and Budget, Monetary Authority, who received these Certificates, on Tuesday, December 31, 2019 in Brazzaville. 

The amount of domestic debt to be cleared, and entrusted to the company SGI-Benin, of 360 billion FCFA, including 132 billion 231 million 876, 547 F CFA of commercial debts to economic operators, and the rest for social security debts, vis-à-vis civil servants, retired persons and others (227 billion 768 million 123,453 F CFA. Note that this debt concerns the 2014-2016 period. The term of its clearance is 7 years.

“On October 2019, our company signed an Agreement with your country, the purpose of which is to provide assistance and expertise to the State of Congo for the clearance of its domestic debt by issuing Special Certificates of secured nominative recievables, and the establisment of an appropriate system for their management”,  Madame Sakinatou Sidi, Director General of SGI-Benin, said. “Also, an electronic management tool has been installed in the Treasury for its operation, as part of the management of Certificates”, she said.

This process consists in issuing Special Negotiable Debts Certificates to creditors: suppliers, service providers, civil servants, pensioners and others, in order to stagger the reimbursement of their payment arrears. 

Receiving the Certificates during this ceremony, Madame Minister of Planning, Statistics and Regional Integration, Ingrid Olga Ghislaine Ebouka-Babackas, said “after structuring and editing the Special Negotiable Debt Certificates, SGI-Benin forward them, this day, to the issuing State, in this case, the Congolese State, which will, through the intermediary of the Treasury, deliver to the creditors and final beneficiaries, in the coming days. These Certificates can be discounted or repurchased by local, regional and international investors, for a discount.” She said. 

 

The Press office of the Ministry of Finance

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