All restrictions for cover on Burkina Faso for export transactions with credit terms of more than two years (medium/long term) have been cancelled by Belgian export credit agency ONDD.

This should concern very profitable projects, a priority for the country’s economic development and be important for the Belgian economy. The ceiling for those transactions has been raised to €50mn. Within the framework of the OECD Arrangement, the premium category for medium and long-term credit transactions remains unchanged (category 7 out of 7).

Burkina Faso’s foreign debt has considerably decreased during the past years. It is now sustainable and can allow cover of business with the public sector. Not only did the country enjoy the forgiveness of debt resulting from the 2002 HIPC process, but also the cancellation this year of its foreign debt with regard to the IMF, the World Bank and the African Development Bank in the framework of the Multilateral Debt Relief Initiative.

Its financial situation, also characterised by a good liquidity, has become very moderate. In this favourable context and political stability, the Burkinabe authorities want to continue their good collaboration with the IMF in order to facilitate the removal of the chronic budgetary deficit and to diversify their economy, which remains too dependent on the cotton sector and its deteriorating price. Because of this, the constant deficit will indirectly decrease on the current account, which proves important needs concerning food and equipment in the domestic economy.