Ivory Coast adopts restructuring plan for the banking sector

May 16, 2014

The Ivorian government has adopted a plan to restructure the public banking sector, with a view to improve the performance of seven financial institutions.

The Ivorian government has adopted a plan to restructure the public banking sector, with a view to improve the performance of seven financial institutions.

"The Ivorian public banking sector has experienced enormous difficulties in guaranteeing a level of activity and optimum profitability. The Council has therefore
adopted a strategy which involves resizing the public banking sector, emphasising the need to maintain the public service functions of commercial banks while optimising their operation," according to a statement issued by the Council of Ministers published by Ecofin news agency.

The government is looking to limit
structural losses of some institutions that have the potential to impact the state budget and to create an efficient banking sector, able to support government policies.

The state will retain its participation in BHCI bank, BNI bank and National Fund for Savings Banks (CNCE). However, the BFA bank and Versus Bank will be fully privatized.

The government will also sell its shares (49 percent) in the capital of the Ivorian Society Bank (SBI) and 20 percent
in the BIAO-CI.

"There are two approaches. We are in a liberal economy and the government will continue its strategy of disengagement from productive sectors to the private sector, but the state will retain a presence in the banking sector to support its business and finance the country's development," Bruno Kone, spokesman of the government, told newspaper Jeune Afrique.ADNFCR-2976-ID-801720764-ADNFCR