Guinea Central Bank Defends US$520M Bond
Guinea's central bank governor says the US$520 million state bond will not drain banks and blames the cash shortage on late banknote orders. The post Guinea Central Bank Defends US$520M Bond appeared first on The Rio Times .
Guinea's central bank governor defended a record local bond that raised about US$520 million, stating it is too small to cause a bank cash shortage. Karamo Kaba, the head of the Central Bank of the Republic of Guinea (BCRG), dismissed concerns over the bond, attributing the cash shortage to late banknote orders. The bond, issued at roughly GNF 8,800 per US$, represents 2.5% of bank resources and eliminates exchange-rate risk for the state.
Kaba emphasized that the bond's interest payments remain in Guinea, aiding the development of the government securities market. The cash shortage, he noted, is not a liquidity crisis, as digital payments and electronic transfers continue to function. The bond's issuance exceeded the state's target, with seven banks participating, and has a five-year term with an 11% annual interest rate.
The International Monetary Fund (IMF) had previously flagged prolonged cash shortages as a risk to Guinea's outlook.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
