The Treasury organizes a workshop Seminar on mechanisms for the securization of Congo's domestic public debt

08 Nov, 2018

From Thursday 08 to Friday 09 November 2018 in Brazzaville, thirty or so agents from administrations and financial authorities’ institutions are attending a workshop seminar on mechanisms for the seucrization of Congo's domestic pubic debt. The worksops have been initiated by Henri Loundou, director of cabinet of the Minister of Finance and Budget, Calixte Nganongo, monetary Authority.

This seminar is part of the restructuration project of the domestic public debt in order to reduce the debt crisis Congo is facing today.   

« Securitization is the mechanism that consists in turning State’s debts into negotiable public securities at the end of the signing of an agreement between the State and each of its creditors. For the efficiency of the securitization process, it is necessary, upstream, to be clearly specified an appropriate legal framework regulating the issues and management of negotiable public securities ",Henri Loundou said.  

 During this training provided by the finance analysis cabinet OJF (Optimum Juridis Finances) based on Cameroon, participants brainstormed on several issues. In particular, the role of the actors in charge of the implementation of the bond issue policy and redemption for negotiable public securities and their prerogatives ; the legal character of securities to be issued, their characteristics and the terms of their issue, redemption and transferability; the procedures for fixing the maturity of the securities to be issued; taxation of income from securities, so as to prohibit double taxation; the terms of payment ; the guarantee of payment of the securities at their maturity ;…  

These various issues were grouped by the trainers in two main themes, namely: "The basic mechanisms of public debt securitization"(for the first day) and “The Convention, the legal aspect and the fixing of the maturities”(for the second day).

It should be noted that this woshop seminar marks the beginning of a long process which should lead to the setting up of a steering Committee (COPIL) in charge not only of implementing all the prerequisites required for the securitization of receivables, but also to develop a mass communication policy to present this securitization transaction to the general public consisting of the creditors of the State and potential buyers of securities to come.  

                                                                             The press office of the Ministry of Finance  

Category:NEWS
Sub Category:TREASURY