Niger fails to meet debt payment, default soars to nearly $520 million
Last week, Niger failed to make a debt payment of 13.4 billion CFA francs ($22 million), according to the West African debt management agency.
This brings the total default to about $519 million since the July coup and Niger’s subsequent suspension from regional financial markets, Reuters reported.
As of last November, Niger’s debt default had reached $304 million under sanctions.
The West African monetary union debt management agency, UMOA Titres, stated in a release that Niger did not fulfil a repayment of principal that was due on February 16.
“This situation is carefully monitored by UMOA-Titres in collaboration with the institutions concerned,” it said in a statement.
Niger’s financial struggle
Following a military coup in July that ousted President Mohamed Bazoum, Niger has been suspended from the regional financial market and the regional central bank by the Economic Community of West African States (ECOWAS) and the West African monetary union.
Last year, the junta claimed in a televised announcement that Niger has reduced its projected spending for 2023 by 40% as a result of international sanctions imposed after the military overthrew the government.
Per the announcement, the budget for the year, which was originally estimated to be 3.29 trillion CFA francs ($5.3 billion), had been reduced to 1.98 trillion but did not specify where the reductions would occur.
The country announced last month, along with neighbours Mali and Burkina Faso, that it was leaving ECOWAS with immediate effect. The regional bloc has a summit planned for Feb. 24 to discuss the situation.
