Ivorian govt. trying to prevent local firms going bankrupt
The government of Ivory Coast has set up a finance committee not only to facilitate the settlement of domestic debt, but also to pursue dialogue between suppliers/service providers and the country’s Treasury.
For some time now, there have been running financial battles between both parties. The government’s internal debt to the private sector is believed to be running into millions of US dollars.
According to the International Monetary Fund (IMF) country report, Ivory Coast domestic public debt is owed to various creditors. It says at June 2011, he stock of domestic public debt amounted to 14.5% of GDP, mostly consisting of government securitites (8.9% of GDP) issued in the regional bond market or to settle past domestic arrears.
‘’We have to pay not only the old debts but we also have to keep in mind our priorities. We sometimes have urgent expenses and when it happens, we do not clear them on the spot. We may create some interferences in the management of the instutition,’’ said Koné Adama, the Director General of the Ivory Coast Treasury.
At the heart of the rumbling discontent is the issue of domestic debt yet to be settled, something which is slowing the country’s economy and causing many companies to go bankrupt.
Adama told West Africa Democracy Radio (WADR) that the committee was set up to work with institutions in selecting, evaluating and paying a supplier or service provider the government was indebted to.
He said the Ivorian government has decided to keep and strengthen institutional rules and move ahead with procedure.
‘’We have started with the institutional rules because we have set up the main treasurey committee with branches at community level and within the central government itslelf,’’the Treasury Director General said.
Adama said the treasury committee was increasingly becoming more relevant, something he said would allow the officials to better manage the institution.