Economy Ministry Calls for Canceling Country’s ‘Unsustainable External Debt’

In a press release received by the Mauritanian Information Agency (AMI) on Tuesday, the Ministry of the Economy and the Promotion of Productive Sectors requested the cancellation of the country’s external debt, which has become difficult to bear due to the COVID-19 pandemic and its economic repercussions on low-income countries. According to the Ministry’s press release, the worsening health situation in Mauritania, like some other countries due to the security problems faced by the Sahel region, has led the Islamic Republic of Mauritania to seek today to undertake a comprehensive and ambitious restructuring of its external public debt. Here is the text of the press release: “The Islamic Republic of Mauritania has requested, through its higher authorities, the cancellation of its external debt, which has become difficult to bear due to the COVID-19 pandemic and its economic implications for low-income countries. In some countries, this situation has been exacerbated by security problems in the Sahel region. The Islamic Republic of Mauritania is currently seeking a comprehensive and ambitious restructuring of its external public debt. Recent decisions made by the G-20 states go in the right direction and deserve to be taken into account. It is within this framework that the Islamic Republic of Mauritania has delegated the Franklin-Finaxim group to provide advice and support for the restructuring of its external debt. As part of the repayment of low-income countries’ debt and in the context of the health crisis linked to the COVID-19 pandemic, the G-20 hopes to see some countries, including ours, open consultations with their public and private creditors to reduce their debt burden and maintain their budgetary capacity so that they can better meet the health and social needs of the population. Mauritania’s choice fell on the Franklin-Finaxim group for its legal and financial expertise, its in-depth knowledge of the country and its experience in initiating restructuring that had a significant economic and social impact. The Franklin law firm and the Finaxim consultancy firm have provided a documented analysis of the situation, a systemic and integrated approach which convinced the Mauritanian economic and financial authorities. The mission assigned to this group includes dimensions related to review and analysis, recommendations, and finally implementation and discussions. The mission will consider the different components of external debt with international financial institutions and the orientation of all bilateral public and private creditors. Nouakchott on 22 December 2020 »