Like other States, WAEMU member countries need financial resources that are complementary to regular revenues (taxes and duties), for the implementation of major economic projects (road infrastructure, hospitals, modern markets, airports, budget support, etc.), and more generally for the implementation of their economic development policies.
To meet these enormous expenses, the States have recourse, among other things, to WAEMU capital markets, particularly the public securities market, to mobilize resources. They generally borrow through the issuance of Bons Assimilables du Trésor (BATs) or Obligations Assimilables du Trésor (BATs), or bond issues in return for an interest rate.
BATs and OATs are debt securities issued by auction by governments seeking financing, but these two types of loans differ in terms of their repayment terms. A warrant is redeemable in the short term (up to 2 years) while a bond is redeemable in the medium or long term (over 2 years).
Bonds are generally longer-term securities issued by syndication on the regional capital market.
The table below presents the projected annual program of issuance by auction of Treasury bills and bonds by WAEMU states during 2021.
Source: Agence UMOA Titres. Data in millions of FCFA