The strengthening of its cash management

The granting slices 2018 and 2019 will result in missions of the French Ministry of Economy and AFD that will assess the advances made with the first installment. Here is a photo was taken in the Libreville market. (Credit: Reuters) The French Development Agency signed Friday 1st December 2017 a financing agreement with the Gabonese government. On a three-year loan of a total amount of 147.59 billion CFA francs, this support will help support deleveraging of the State and the strengthening of its cash management.

Gabon can continue to rely on external support. Friday 1 December 2017, the country signed with the French Development Agency (AFD), a financing agreement allowing them to benefit from a large loan. With a budget of 147.59 billion CFA francs or 255 million euros, the agreement was signed in the presence of the Ambassador of France in Gabon, Dominique Renaux, the Gabonese Minister of Economy and Regis Immongault Director of AFD, Laetitia Dufay. According to the latter, it is an aid that covers three years and the first disbursement will be done before the end of 2017. The agreement specifies that the grant tranches in 2018 and 2019 will result in missions of the French Ministry of economy and AFD that will assess the advances made with the first installment. “Each tranche will be subject to a prior specific lending agreement,” says one.

On the side of the French diplomatic representation, it is specified that the support of the AFD will go precisely to revive the Gabonese economy by supporting the debt of the country. This financing agreement is “support deleveraging of the Gabonese government and strengthens its cash management by contributing to the reduction of domestic and external arrears as specified in the settlement plan of government arrears,” said Dominique Renaux. The diplomat continued, adding that it is also for AFD to “help remove some of the structural constraints on public finance management by supporting the implementation of the reforms set out in the memorandum of economic policies and financial annexed to the agreement with the IMF. ”

Budget support agreed at the Yaoundé summit

This French support in Gabon is not a coincidence. According to government sources in Gabon, it operates under the guidance of donors to the decisions taken by the Heads of State December 23, 2016 in Yaounde at the Extraordinary Summit of Heads of State of Central Africa.

“This financial support, it is not the risky cash injection. This support allows to implement the necessary structural reforms. This support allows to restore the credibility of the signature of the state domestically and foreign level, “said Régis Immongault.

According to him, this funding should contribute to the revival of Gabon’s economy by facilitating the launch of projects such as the construction of classrooms and the rehabilitation of the Trans-Gabon railroad. “I can reassure you that Gabon is totally committed to the success of the economic stimulus program,” promised the Gabonese financier facing the French side.

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