No Money For Ivorian Debt - Ouattara Camp

No Money For Ivorian Debt - Ouattara Camp

Ivorian presidential claimant Alassane Ouattara's government team have said there was no money in state accounts to pay the country's debts, including an overdue Eurobond interest payment due by Monday.

A spokesman for Ouattara's parallel government said the coupon could be paid only when Ouattara gained full control of the country's accounts at the West African central bank.

Ouattara was recognised by world leaders as the winner of a November 28 election, but has struggled to get control of the country's finances from incumbent Laurent Gbagbo who has resisted pressure to step down.

"Ivory Coast has no money to pay any debt at all," Patrick Achi, a spokesman for Ouattara's rival government, said days before the grace period for the coupon for Ivory Coast 's $2.3 billion Eurobond due in Year 2032 runs out.

Ivory Coast missed a $29 million coupon payment at the end of December.

The bond's yield reached a record 16.9 percent on Friday on expectations the coupon would not be paid on Monday, after which the bond would be in default.

Ouattara has been given official control over the country's accounts at the West African central bank, the BCEAO, but regional leaders last week forced the bank's governor to resign after complaints from Ouattara that he was continuing to allow Gbagbo access to the funds.

Gbagbo this week ordered the requisitioning of the bank's offices in Ivory Coast in an effort to retain control of the operations in country.

"Where do you want us to get the money from? As soon as we get control of the central bank account we will pay it, for sure." Achi said.

Achi said that Gbagbo has managed to drain about $500 million from the account since early December, when Ouattara was declared the election winner by United Nations-certified results, which were overturned by a pro-Gbagbo legal body.

Gbagbo, who retains control of the military and most state institutions, has rejected international appeals to stand down and dismissed threats by regional leaders to oust him.

His government has said it is prepared to pay the Eurobond coupon after creditors recognise him as the legitimate president.

UN Chief Worry About AU Rift

Meanwhile, the UN Secretary-General, Mr. Ban Ki-moon has expressed concern about splits in African efforts to end a power struggle in Ivory Coast , calling for recognition of the November 28 election.

"I am concerned that differences of opinion are now surfacing among the African Union ," Ban told a news conference on Friday, at the annual meeting of the World Economic Forum in Davos.

“This is not desirable at this time in preserving the integrity and fundamental principle of democracy."

The African Union has recognised Alassane Ouattara as winner of the election against incumbent Laurent Gbagbo but some cracks have emerged in the unity of the continental body, due to discuss the crisis at a summit in Ethiopia this weekend.

"I am going to discuss with African leaders how they can resolve this issue in a peaceful way," Ban said.

Some 260 people have been killed since the standoff, the United Nations estimates, raising worries of a new civil war in the world's top cocoa producer nation.

REUTERS/Margaret/Yinka