(Ecofin Agency) - Côte d'Ivoire successfully issued a $2.6 billion Eurobond in January this year, which Fitch Ratings believes will help alleviate financing constraints in the country and enable a restructuring of the national debt.

Côte d'Ivoire's interest-to-revenue ratio is expected to decrease to 13.9% by 2025, compared to 14.8% in 2023, Fitch Ratings noted in its latest report on the country’s solvency, published on February 2.

The rating agency based its forecast on the successful issuance of the $2.6 billion Eurobond by the Ivorian government in January, easing the country's financing constraints. Fitch also explained that the resources raised will facilitate a debt restructuring, therefore smoothing the repayment profile of external debt and reducing the cost of debt. As a result, the agency expects the country's public debt to remain "sustainable," even though the debt-to-GDP ratio is projected to reach 58.5% in 2024, driven by "robust" economic growth. "Accelerated" reforms and investments under the National Development Plan, coupled with the initiation of natural gas and oil production at the Baleine field, which commenced operations in August 2023, have fueled growth.

Additionally, Fitch expects the growth deficit to narrow to 4.4% of GDP in 2024 and 3.5% in 2025, slightly above the government's target outlined in the IMF program. According to the rating agency, Côte d'Ivoire's real GDP increased by 6.7% in 2023, compared to the government's estimate of 7%, relative to the 2022 level. Growth, on the other hand, is forecasted to remain high in 2024-2025, around Fitch's medium-term growth estimate of 6.5%.

Given these trends, Fitch Ratings has decided to maintain the country's rating at "BB-" with a stable outlook, reflecting a balance between "Cote d'Ivoire's strong growth prospects against low development indicators and high commodity dependence.” The "sound" fiscal management further strengthens the agency's confidence in the Ivorian authorities' ability to implement the necessary reforms to overcome challenges.