Ivory Coast - 10.000 billion of debt in 20 months
Issue by RTI(Ivorian National Radio and Television): "One of the consequences of the cancellation of the external debt is enhanced borrowing capacity of Ivory Coast . What will the new debt policy of Ivory Coast for the future Ivorian children not to inherit huge debt? "Alassane Ouattara response :" We have less debt than France, Germany or other countries. With the cancellation of the debt by the HIPC, we will fall to around 15%. I think this is a reasonable level. After that, I will not go borrow from public institutions. I will go to the financial markets. For example, if I need one billion euros to invest in the railway, because I have a good signature and a deficit close to zero, the inflation rate is low and the country is well managed/governed - I would borrow on international markets. It will not be necessary to go to the International Monetary Fund or the World Bank. This is what I like ambition in 1990 when I was Prime Minister. I'm glad that by the end of my term, we can do it. These are loans that will be used to fund projects that reimbursement. It will not be a debt that will weigh on Ivorians or our children, as we have lived. "
Nice oratorical effect, unfortunately stained of falsehoods. The interview was conducted on 30 March 2012. On 4 December 2012, Alassane Ouattara flew to Paris with half the government "begging" funding the construction of the bridges. The World Bank and the IMF have pledged 1.5 trillion FCFA. Basically, public funding (including Ouattara did not want) announced amounted to 4300 billion FCFA. To everyone to enjoy the demagogic Ouattara.
So when the current head of state, hand on heart, swear that "are loans that are assigned to projects and that these projects support the loan. This is no longer a debt to the Ivorian, nor our children, "there is strong reason to doubt: debt Alassane Ouattara of Ivory Coast and are future generations who will suffer.It performs well in its exhilarating statements about supposed economic benefits of his many trips abroad. He was proud and happy to bring money (actually problems) in the country. When it should keep a low profile in terms of data on external debt of Côte d'Ivoire.
According to the famous CIA World Factbook (version 1st January 2012), the external debt of Ivory Coast was late 2010- 11340000000 dollars (about 5.67 trillion CFA francs). In 2011, it stood at $ 11.6 billion (about 5.8 trillion FCFA). The same source estimated at $ 11.9 billion (about 5.95 trillion CFA francs) for 2012. It should be noted that data for the latter post-deadline debts are not taken into account. In Ivory Coast the service of the external debt increased in 2012 due to increasing payments to bilateral and private creditors (62 billion FCFA 145.1 billion of maturities due, or 42.7%), which were not served before the recent agreements on foreign debt. In addition, the country must keep up these payments over the life of the program. This means that this amount is probably higher. This means that the Ivorian foreign debt continues to grow. "Since reaching the completion point, the external debt has risen sharply. All data are not available. But there is about 845 billion FCFA net debt added to the residual outstanding, "said a credible source. This means that external debt was quickly rebuilt. This is all more worrying that Ivory Coast is no longer in the HIPC program and all debts must be settled to due date. "The reconstruction of the debt even more worrying that the ratio of debt service to revenue is poised to exceed the standard of viability. Most debt is bad debt contoured to repay short and medium term, "he says.
why is it then that Ouattara is so happy to borrow even unsustainable debt, country to get the country over indebted? For the economist-banker, external borrowing gives the possibility of increased investment in the social sectors for a better living environment. This is a legitimate approach. This is neo-liberalism, which has promoted the debt as a tool for growth. A question arises about the legitimacy of the principle of public debt as a permanent necessity. There's certainly a need of public investment . But should the state borrow constantly ? This is where the economic theories of this man is questionable even doubtful.
For example, we remember, in the 70s, the realization of major projects in the agro-industrial sectors (such as sugar complexes, the project Soja), and infrastructure (for example energy programs Taabo, Ayame, Bia, Kossou). According to some sources, the value of public investments valued at 540.6 billion CFA francs, was approximately 47% higher than that specified in the plan. And this frenzy of investment has resulted in a sharp increase in public debt, including external debt, as public investment was mainly financed by external borrowing.The pattern has not changed under Ouattara.Alassane Ouattara is obsessed with the challenge of economic growth. What is essential for him is how to bring the Ivory Coast to be an "emerging economy by 2020" according to his regime slogan. Yet to this day - Well aware economists lose their word - the total external debt of Ivory Coast is about 10,000 billion FCFA. And this in less than two years of exercise of "power"(the power is actually in the hands of the multinational corporates) ! Besides the funding announced after the meeting of the Advisory Group on Financing the construction of a bridge, borrowing from the Boad, the Investment Bank of ECOWAS, the Islamic Development Bank etc.. Those organizations that "give" in Ivory Coast do not do it by mere friendship or by philanthropy, but with the aim of recovering huge dividends. Do not forget that the debt is a powerful instrument of lenders on borrowers domination, and thus strengthening the power of finance in a context where domestic revenues are very low. Most African countries in the south Sahara are paying a bitter price today. Too much debt, lead to ruin and deprives of independence/sovereignty . It is a Balzacian law that threatens the country . "Indebting" Ivory Coast in this way, is not smart.
It's obvious that the goal is to give away the country to the "corpotocracy " , since Ouattara is the IMF insider in Africa in general and Ivory Coast particular. In that perpective we can better understand why He's so happy to endebt the country. And when he says things such as "After that, I will not go borrow from public institutions. I will go to the financial markets( Multinational corporates). For example, if I need one billion euros(which will in realty never arrive since it's only on paper but rather a corporate jumps in to construct the railwail or whatsoever so in one word we rather owes the money ) to invest in the railway, because I have a good signature and a deficit close to zero(occult clauses on conditionality ), the inflation rate is low and the country is well managed/governed (by the corporates who are taken over the country) - I would borrow on international markets. It will not be necessary to go to the International Monetary Fund or the World Bank(of course not since this international mafia fund has finish its part in the illegal but institutionalized financial transaction, the corporates which fund it get into action). This is what I had as ambition in 1990 when I was "Prime Minister" (imposed to Ivory Coast as part of the so called Structural Adjustment Plan which in fact was a plan of economic sabotage and assassination of Ivory Coast elephant projects based on self dependency in all aspect especially economic ). I'm glad that by the end of my term, we can do it. These are loans that will be used to fund projects that reimbursement. It will not be a debt that will weigh on Ivorians or our children, as we have lived. "
The big lie which even an idiot in economy can see it that those projects are not for free so borrowing to realize them in order to reimburse debts means that what you borrowed has to be repaid with the interest at due date as well . This is more than a double assassination since we dealing with a HIPC with an unsustainablle debt to start with. And failure to respect the dates could be very costly but even worse is that the state would need more borrowing to sustain its needs since all economical revenues are for reimboursement which means nothing in the state treasory....In one word this henchman in the name of Alassane Ouattara on behalf of the IMF (and its funding corporates ) has pushed Ivory Coast to an inferno economical impasse which might end the nation sovereignty soon(probably already done since it the UN/France who decide who won the election despite the people choice of Gbagbo democratically elected) if nothing is done now...
Here's below the confession of an ex economical henchman (John Perkisns )exposing what's really behind the nice oratorical display from of one of his former colleagues Mr Ouattara the Burkina Faso national imposed by the UN/France(on behalf of the corporotocracy ) at the head of Ivory Coast .