Gabon has not yet submitted a formal request for a financing program, an International Monitory Fund (IMF) Spokesperson Julie Kozack told Reuters on Wednesday, adding that a 10 day staff visit to the country will begin next week.
Market optimism about a potential IMF program has bolstered Gabon’s Dollar denominated bonds maturing in February 2031, which rose from 76.75 cents on the Dollar on January 20 to 86 cents on Wednesday.
IMF engagement with Gabonese authorities remains close, Kozack said, adding that its staff will evaluate recent economic developments and discuss policy and reform priorities during their visit from February 25 to March 6.
“The Gabonese authorities have announced their intention to work towards an IMF supported program. Technical discussions are ongoing, but we have not yet received a formal request,” Kozack said.
After a number of false starts and ongoing concern about the debt pressures, uncertainty persists.
“It would be nice to see them actually moving ahead with some more tangible sort of IMF agreement in principle or more tangible talks. And so we’re eagerly awaiting the result of this mission,” said Giulia Pellegrini, Lead Portfolio Manager for emerging markets debt at Allianz Global Investors.
–Reuters–
