Cost and risk indicators of the public debt portfolio as at 31 may 2019

Aspect

DEBT INDICATORS

1. KEY PUBLIC DEBT INDICATORS

The change in the stock of public debt outstanding in May 2019 led to some changes in the cost and risk profile of the overall portfolio.

First of all, the debt ratio (excluding outstanding debt and public company debt) increased by around one point of the GDP percentage, going from 35% in April 2019 to 36% at the end of May 2019. This increase is mainly driven by increased mobilization of domestic loans in the form of public securities and bank loans, for a total amount of CFAF 156 billion disbursed in May 2019.

 

As for risk indicators at the end of May 2019, they also showed slight changes compared to those recorded at the beginning of the year:

  • The average duration of the overall portfolio increased from 8 years to 8.2 years, mainly driven by external debt, including the slowdown in non-concessional loan disbursements in line with EFP constraints and the prioritization of concessional disbursements with relatively longer maturities;
  • The portfolio's exposure to interest rate fluctuations decreased slightly from 12.9% to 12.1%;
  • The exposure of the debt portfolio to exchange rate fluctuations decreased from 77.3% to 75.4%. This situation is dependent on the increase in domestic disbursements in May 2019.

Table 16 :Cost and risk indicators for the public debt portfolio

Source : CAA 

2. BREAKDOWN OF THE PORTFOLIO BY CURRENCY

 

As at 31 May 2019, the following predominant currencies made up the total public debt: the Euro for 29.1%, the FCFA for 24.6%, the US Dollar for 21.1%, and the XDR for 13.5%. The previous month, this portfolio was made up of the Euro for 29.8%, the FCFA for 23.8%, the US Dollar for 21%, and the XDR for 13.8%.

Graph 3 : Distribution of public debt by currency

Source : CAA

In the same vein, three (03) main currencies dominate the composition of external debt, namely the Euro with 38.5%, the US Dollar with 28% and the XDR with 17.9%. As at 31 May 2019, 38.8% of this composition was dominated by the Euro, 27.4% by the US Dollar and 17.9% by the XDR.

Graph 4: Distribution of external debt by currency

                      

 Source : CAA