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The World Bank has suspended payments to Gabon after the country defaulted on its debt payments for months. The decision was formalized in a note dated July 1.
According to the World Bank, Gabon has not met its financial commitments, with a cumulative arrears of around 10 billion CFA francs as of June 30. As a result, the institution decided to suspend all payments, affecting several ongoing development projects.
This information was revealed in a report by Ousmane Diagana, the World Bank’s vice president for West and Central Africa, who visited Gabon in May and met with transitional leaders, including the head of state, Brice Clotaire Origi Nguema. The country’s precarious financial situation and payment delays led to this drastic measure.
The suspension of payments threatens many important projects, including the modernization of cities through the construction of paved roads, technical training for young people, the expansion of fiber optics to neighboring countries, and the eGabon project, which aims to digitize Gabon’s administration.
In response, the Gabonese government issued a statement explaining that the delays were due to technical problems that have now been resolved. The Ministry of Public Accounts confirmed that public finances have paid their arrears, highlighting the heavy debt legacy and mentioning the repayment of 136 billion CFA francs within ten months.
Looking ahead, it is crucial for Gabon to stabilize its finances and regain the confidence of international financial institutions. Settlement of arrears and transparency in public financial management will be decisive in resuming development projects and avoiding such suspensions in the future.
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