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Gabon’s Public debt rises by 4000 billion FCFA between 2009 – 2019

Gabon’s public debt has almost quadrupled in ten years, going from 1300 to 5320 billion CFA francs between 2009 and 2019. According to economic analyst Mays Mouissi, the 4000 billion borrowed have unfortunately not been beneficial for the country. country.

In 10 years, public debt has almost quadrupled. This increased from 1300 to 5320 billion CFA francs between 2009 and 2019, according to Mays Mouissi. “In 2009, Gabon’s debt represented 18% of GDP, or roughly 1300 billion CFA francs. Which was an extremely low level. And then I don’t know what happened, the debt almost quadrupled between 2009 and 2019, “he said. The economist analyst was speaking at a recent presentation on Gabon’s debt structure, in a video on Facebook.

He admitted, however, that debt is not in itself a bad thing. On the other hand, he qualified, “the use we make of the money we borrow can be exceedingly bad. Debt well used can become a driving force for the country in the sense that it can bring in money, for example in the case of the construction of a toll road. But this was not always the case (…) Between 2009 and 2019, we borrowed more than 4000 billion CFA francs. What do we actually have? “

According to the economic analyst, Gabon’s public debt is made up of bilateral debt (when the country is indebted to another country) and multilateral debt (when the country is indebted to institutions such as the Fund. international monetary) which hardly existed in 2009. On this occasion, Mays Mouissi provided some details on the funds given to Gabon by this institution.

“The IMF gives money to the government and people often expect these funds to improve their living conditions. They are wrong because the IMF does not invest to improve living conditions. When the state’s accounts are in the red, the IMF finances its overdraft to bring the level down to zero in the hope that the state behaves in a virtuous way so that the economy starts up again, that’s all. While the IMF demands reforms in return for its funds, the IMF’s programs are not aimed at improving the living conditions of the populations, “said the economic analyst.