Mali Defaults on Domestic Debt After Economic Bloc’s Sanctions

(Bloomberg) -- Mali missed payments totaling about $31.6 million on its domestic debt after West Africa's economic bloc imposed sanctions on the country following last year's coup.

Mali was unable to make coupon payments totaling 2.7 billion CFA francs ($4.65 million) due Jan. 28 on two bonds because its account with the regional central bank was frozen and all transactions through the lender have been blocked, the nation's Finance Ministry said in a statement Wednesday.

The Economic Community of West African States imposed sanctions on Mali last month over the military junta's refusal to hold elections by this month, following an August 2020 military coup. The 15-nation bloc also ordered borders to the landlocked country to be closed to pressure its leaders to restore democratic rule. 

“Because of these restrictions and despite there being sufficient funds in Mali's public treasury, the central bank didn't make the payments” due Jan. 28, the ministry said. Africa's third-biggest gold producer sought to reassure its investors, saying it would meet all outstanding payments as soon as the sanctions are lifted. 

The West African market for government securities, known as UMOA-Titres, said in a separate statement that a payment of 15.6 billion CFA francs ($26.9 million) due Jan. 31 had also been missed.

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