In the Democratic Republic of the Congo, Treasury bill issues amounted to CDF 566.8 billion (USD 306.047 at the average budget rate of FC 1852 per US dollar) in 2020, including 15.5 billion in interest withheld against subscriptions received of 713.5 billion, while the announced amount was 994.5 billion CDF, according to the Central Bank of Congo (BCC).
“Compared to the cash flow plan forecasts (PTR), the bid volume represented a coverage rate of 81.9%. For reasons of debt sustainability, the Treasury was sometimes called upon to reject certain offers. However, in the absence of a mechanism to stimulate the Treasury securities market and in the face of increasing exchange rate risk, some banks have gradually withdrawn from this market, “says the issuing institute.
Thus, he adds, the weighted average interest rate served rose from 4.9% in January to 19.5% at the end of October 2020. The maximum rate offered reached 25.0% in the month of August and a peak of 22.2% in December for the average rate. In his understanding, “this increase is also explained by the depreciation of the national currency and the upward revision of the key rate of the BCC brought to 18.5%”.
During fiscal year 2020, the finance law provided for 350 billion CDF (150 million USD) for the issuance of Treasury Bonds and Bonds. On an annual forecast amount of CDF 692 billion registered in the public sector cash flow plan at the end of December 2020. It was in October 2019 that the government resumed with the issuance of Treasury Bonds, to cope with the decline. increasingly high public revenue in relation to expenditure.