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Vol 61 No 19

Published 24th September 2020


Default hits election plan

The de facto default on Eurobond payments is getting in the way of a plan by the ruling party to create a slush fund for its next election campaign

The government's request on 22 September to holders of its US$3 billion of Eurobonds for a six-month suspension of repayments will have political repercussions as well as the financial ones that are exercising the markets. While state technocrats juggle with the figures, the ruling party fears that this sovereign default will hinder its plans to create a war chest for its August 2021 general election campaign. It hopes to fatten up a farm subsidy programme and skim from it to finance its political spending, Africa Confidential has learned.

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