Regulatory Alerts2021-02-01
Refinancing of Recovery Bonds Issued by UEMOA Member States
The Central Bank of West African States (BCEAO) issued Notice No. 002-01-2021 to establish a special refinancing window for recovery bonds issued by UEMOA member states in 2021. The notice enables commercial banks to access funding through this window for six months at the minimum bid rate set in BCEAO auctions. This mechanism provides member states with more flexible financial conditions to accelerate regional economic recovery following the COVID-19 pandemic.
[Logo: BCEAO CENTRAL BANK OF WEST AFRICAN STATES]
NOTICE NO. 002 - 01 - 2021 REGARDING THE REFINANCING OF RECOVERY BONDS ISSUED BY UEMOA MEMBER STATES
The member states of the West African Economic and Monetary Union (UEMOA) have developed recovery plans to contain the effects of the pandemic and return to pre-COVID-19 health crisis performance levels.
To mobilize the resources necessary to finance these recovery plans, the states have structured recovery bonds that will be issued on the regional financial market.
To provide adequate support for this initiative, the Central Bank of West African States (BCEAO) has established a special refinancing window called the "recovery window". All recovery bonds issued by the states in 2021 on the regional financial market are eligible for this window.
Banks may mobilize resources through this special window for a duration of six (6) months at the minimum bid rate in BCEAO auctions.
Through this decision, the Central Bank intends to continue supporting the states' efforts in mobilizing financial resources under more flexible conditions to kickstart economic recovery within UEMOA.
Done in Dakar, on 29 JAN. 2021
THE CENTRAL BANK OF WEST AFRICAN STATES