Mali says it has defaulted on bonds, blames sanctions

Mali has defaulted on bonds worth 2.7 billion CFA francs ($4.67 million), its finance ministry said on Wednesday, blaming sanctions imposed by West Africa’s regional bloc and central bank.

The ECOWAS group of nations announced measures on Jan. 9 including the freezing of Malian state assets in member countries’ commercial banks and the suspension of non-essential financial transactions, in response to a decision by the military junta that seized power in 2020 to delay elections.

The regional monetary union UEMOA also imposed sanctions, instructing all financial institutions under its umbrella to suspend Mali with immediate effect, severing Mali’s access to regional financial markets.

“Because of these restrictions and despite having sufficient reserves in its treasury, the central bank did not proceed to meet the bond repayment scheduled for Jan. 28,” the ministry said, adding that Mali would pay its debts as soon as the restrictions were lifted.