This DSA updates the previous Joint DSA dated December 14, 2018 (IMF Country Report No. 18/367). Côte d’Ivoire’s debt carrying capacity, calculated based on the October 2019 WEO and the World Bank’s 2018 CPIA is classified as medium. The applicable thresholds to the public and publicly guaranteed external debt are: 40 percent for the PV of debt-to-GDP ratio, 180 percent for the PV of debt-to-exports ratio, 15 percent for the debt service-to-exports ratio, and 18 percent for the debt service-to-revenue ratio. The applicable benchmark for the PV of total public for medium debt carrying capacity is 55 percent of GDP.
In this DSA, Public and Publicly Guaranteed external debt excludes French claims under C2D debt-for-development swaps, which were cancelled in the context of beyond HIPC debt relief. Under the C2D mechanism, debt service due on these claims is returned as grants to the government to finance development projects. Flows associated with the C2D process are included by IMF staff in the external and fiscal accounts to capture gross cash flows (debt service and grants). See IMF Country Report nº14/358 and Supp.1, 11/21/2014 for a detailed discussion. The amount in the DSA also excludes CFAF-denominated external debt.
The Debt Reduction-Development Contract (C2D) is a debt restructuring tool under which Côte d'Ivoire continues to service its bilateral debts to France and Spain until repayment, but the amounts are transferred back to the country as grants to finance poverty reduction programs.
A large part of the domestic debt consists of securities issued in the regional auction and syndication debt markets.
The other variables from the macroeconomic framework consist of five variables: real GDP growth, remittances, import coverage of reserves, the square of import coverage of reserves, and world economic growth. The CI uses ten years of data (5 years of history and 5 years of projections) to smooth out economic cycles.
The share of USD denominated debt is estimated to be decreasing over time. The considered shortening of maturities of commercial external borrowing are as follows. If the original maturity is greater than 5 years, the new maturity is set to 5 years. If the original maturity is less than 5 years, the new maturity is shortened by 2/3.
In October 2019, the authorities issued a EUR 1.7 bn Eurobond. A significant part of it, EUR 1.4 bn, was used to refinance debt repayment peaks coming due in 2024/2025/2032 and switch some Eurobonds from dollars into euros. Half of the Eurobond issuance was with a 12-year maturity at 5.875 percent and the other half with a 32-year maturity at 6.875 percent.