(Ecofin Agency) - Côte d'Ivoire plans to spend $11.7 billion on servicing domestic debt between 2024 and 2026, according to official data consulted by Ecofin Agency. This amount, covering principal, interest, and other fees, surpasses the cost of repaying external debt and accounts for around 60.6% of the country's total debt service of $19.7 billion over the same period. Most of this domestic debt is held by undisclosed local creditors.

The projected $8.1 billion allocated for domestic debt repayment is expected to inject additional liquidity into the economy. Managing debt is a key commitment in the country's agreements with the International Monetary Fund (IMF). To achieve this, Côte d'Ivoire has adopted a medium-term plan that considers the present value of future borrowing costs to determine the current debt level.

Accurately determining the future debt service amount is crucial to this strategy. Côte d'Ivoire plans to increase external borrowing, ensuring that the present value of total repayments does not exceed $6 billion by December 31, 2024. This projection will be closely monitored.

Authorities have set a discount rate of 5%, implying that for 2024, the total planned international market borrowing, including loans from the West African Development Bank (BOAD) denominated in CFA francs, estimated at $6.46 billion, should benefit from an average interest rate between 4% and 6%. However, securing such rates depends on various factors beyond Côte d'Ivoire's control.

As of the end of 2023, Côte d'Ivoire's debt stood at $46.2 billion, representing 58.1% of its gross domestic product (GDP). External debt amounted to $28.5 billion, or 61.8% of total debt. Major creditors include the World Bank ($3.9 billion), the IMF ($2.8 billion), the African Development Bank ($1.2 billion), and the French government-Société Générale France ($1.9 billion). Despite the higher proportion of external debt, the budget allocated for its repayment remains modest.