Burkina Faso issues €30.5m in treasury bonds
The Central Bank of West African States (BCEAO) has just issued 20 billion CFAF (€30.5 million) in treasury bonds on behalf of the Burkinabe Treasury.The Central Bank of West African States (BCEAO) has just issued 20 billion CFAF (€30.5 million) in treasury bonds on behalf of the Burkinabe Treasury.
These bonds are available directly for banks and other regional financial institutions that own a current account with the BCEAO for a period of 91 days, from September to November 2011.
Other investors will have to go through banks located in the West African Economic and Monetary Union (WAEMU) territory, APA news agency reports.
Burkina Faso's government will use the funds to finance new social measures and repair the damage caused by last spring's protests.
The use of bonds issued on regional and international markets is increasingly common within the management systems of public finances in Africa.
This type of system allows governments to finance their national budget but also to establish a presence on international markets and access internal pools of funds.
It is based on the improvement of the continent 's macroeconomic solvency and credibility, an expert from JP Morgan told Les Afriques newspaper.