Over the past few years, the financing requirement for the central government has extended beyond what would be implied by the budget deficit (see Box 1 CR/17/230). In particular, the need for the Treasury to finance deficits of the Post Office and the Civil Service Pension, as well as the tapping of unutilized appropriations of past budgets through the comptes de dépôt, resulted in additional net financing beyond the budget deficit of 2.5 percent of GDP in 2016. The PSI 4th review introduced a new assessment criteria (AC) to bring this additional borrowing gradually down over the remainder of the PSI and to zero by end-2019.
The IMF and World Bank have provided technical assistance on debt management, including recent work on developing a medium-term debt strategy.
The analysis uses remittance-enhanced debt burden indicators, consistent with DSA guidance––in the last three years, remittances as a share of GPD are equal to 11 percent and remittances as a share of total exports are equal to 41 percent, both above the guidance thresholds.
Preliminary results of a rebasing exercise to be finalized in 2018 suggest that changing the base year from 1999 to 2014 will increase the level of GDP by about 30 percent. This would imply a fall in the projected debt to GDP ratio in 2017 from just over 60 percent to around 47 percent, with the debt to GDP + remittances shock scenario staying below the threshold for the projection period.
Public debt covers central government debt and does not include the debt of state-owned enterprises or guarantees. Government bonds issued on the WAEMU regional market are treated as domestic debt.