Since the coup in Mali, the country has already missed an appointment to issue securities on the WAEMU money market. The ongoing transition is not positive for the country's very short-term prospects.

The coup in Mali has disrupted the country's activities in the capital market of the West African Economic and Monetary Union, the Ecofin Agency was able to learn from market information. On August 26, 2020, an issue of assimilable Treasury bonds for an amount of 30 billion FCFA was "postponed to a later date".

The Agence UMOA-Titres, which organizes the market for loans on the issue of securities in this sub-region, did not give any details on the reasons for this postponement. "On behalf of the Public Treasury of Mali, the Agency thanks all the investors for the constant support to the initiatives for financing the Union's development actions", simply explained the institution.

It is not certain that Mali will be on the WAEMU money market on September 9 and 23, as provided for in the country's securities issuance schedule. Uncertainty also hovers over its ability to repay XOF51.43 billion representing the principal amounts and interest on securities loans, which mature between September 1 and September 26, 2020.

This situation weighs in the first line on Malian investors who hold most of the public securities issued by the country on the WAEMU market (403 billion FCFA). Burkinabè investors (210 billion FCFA) constitute the second group which closely monitors the situation.

The perpetrators of the putsch are under pressure from the Economic Community of West African States (ECOWAS), which is maintaining its sanctions and demanding a transition managed by civilians. We are awaiting the conclusions of the major national consultation on September 5 and 6 in Bamako to get an idea of the roadmap for the transition.

In a note published on August 25, Moody's judged that the current situation is negative for Mali's issuer profile. If the reduction in international trade and investment is prolonged, it will have a considerable negative economic effect on the country's economy.

"Although the Malian mining sector which provides about 25% to 30% of government revenue and accounts for most foreign exchange earnings continues to operate for a few months, a more prolonged disruption of trade and financial flows would hamper production," the minister warned. 'rating agency.

Beyond the political and social stability that must be rebuilt, the transitional government will have to deal effectively with an economic situation that has been shaken by the coronavirus pandemic. Gross domestic product growth is expected to be less than 1% for 2020. It will be weighed down by a decline in economic activity and inflation that is slow to take off.

The upcoming release of the country's yield curve will show how confident investors are in the country's outlook.