The State of Burkina Faso grants a guarantee of 252 billion in favor of IB Bank to acquire military equipment

The State of Burkina Faso has granted a sovereign guarantee of more than 252 billion FCFA to IB Bank, as part of the acquisition of military surveillance and combat equipment against terrorism, a learned the AIB.

The sovereign guarantee of 252 billion 795 million 735 thousand 523 FCFA validated by the Council of Ministers on March 1, 2023, to IB Bank Burkina (Ebomaf Group), aims to cover an operation to acquire military surveillance and combat equipment, indicated the Minister in charge of the Economy Aboubacar Nacanabo, in an interview published Wednesday by the state daily Sidwaya.

“The sovereign guarantee is a commitment for which the State or another public person grants its guarantee to an organization whose borrowing operations it wishes to facilitate by guaranteeing the lenders the service of interest and the repayment of the capital, in the event of default. of their debtor”, explained the Minister.

According to Mr. Nacanabo, it was the equipment supplier itself who chose IB Bank Burkina and not a favor granted to this bank by the State.

“If the supplier offered us another bank that was willing to cover the operation, we would have found no objection. The most important thing for us was to acquire strategic equipment to facilitate the air operations of the army,” said Aboubacar Nacanabo, according to Sidwaya.

For the minister, the survival of Burkina Faso is more important than debt sustainability

Source: Burkina Information Agency