Medium-Term Debt Management Strategy (MTDMS)
The Medium-Term Debt Management Strategy (MTDMS) adopted, attached to the finance law at the beginning of the year and implemented by the Government, should be systematically updated each year.
The MTDMS takes into account the evolution of the macroeconomic and budgetary framework, which reflects the National Development Plan (PND), through the implementation of the Government's priority actions defined each year.
The current MTDMS is the strategy for 2022-2026. The objectives of the MTDMS 2022-2026 can be summarized as follows:
- to meet the financing needs of the State and its payment obligations at the lowest possible costs;
- to ensure that the risks related to the public debt portfolio remain within acceptable limits;
- to contribute to the development of the domestic market.
In the coming years, the State should prioritize financing that helps reduce the risk of refinancing domestic debt, interest rate risk, and exchange rate risk.
More specifically, financing needs should be covered on average according to a 45-55 ratio of external and domestic financing instruments over the period 2022-2026. External resources would consist of financing for project or program loans that are concessional, semi-concessional, commercial, and financing from international markets, respectively accounting for 18%, 44%, 10%, and 28% over the period 2022-2026. Domestic resources would be mobilized through short, medium, and long-term loans, respectively accounting for 10%, 55%, and 35% over the same period.
This strategy prioritizes domestic debt over external debt, with a preference for financing denominated in euros and at fixed rates.
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MTDMS Update end of April 2021 |
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MTDMS 2019-2023 updated in August 2019 |
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MTDMS Report 2017-2021 |
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MTDMS Report 2022-2026 |
Stratégie-de-gestion-de-la-Dette-à-Moyen-Terme-SDMT-2022-2026.pdf |
Debt Viability Analysis (DVA)
The risk of over-indebtedness in Côte d'Ivoire remains moderate during the period 2022-2041, both for external debt and total public debt, with a threshold breach of the external debt service ratio to budgetary revenues excluding grants in 2025.
In the context of the baseline scenario, solvency indicators (the ratio of the Present Value of external debt to GDP and exports) remain below their respective thresholds over the period 2022-2032.
Similarly, the external debt service ratio to exports remains below its threshold throughout the analysis period.
However, the external debt service ratio to budgetary revenues excluding grants exceeds its threshold of 19.63% in 2025 (with a limit of 18%).
Finally, the ratio of Present Value of public debt to GDP remains below its reference point from 2022 to 2032, with an average gap of 10.92% compared to its threshold, which is set at 55%. Furthermore, the total public debt portfolio remains vulnerable to a shock on the economic growth rate (GDP growth would drop from 7.2% in 2023 and 7.0% in 2024 to 4.8% in 2023 and 4.6% in 2024, respectively).
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DVA Report as of end of October 2022 |
