The Strategist

Moody's forecasts default of Niger

08/04/2023 - 03:28

The international rating organization Moody's has lowered Niger's rating by two notches, from B3 to Caa2. It is expected to get worse, writes the local newspaper Business Day.

According to Moody's, the sanctions imposed by the West African Economic and Monetary Union and the Economic Community of West African States will prevent the nation from making its debt payments, which is by definition a default.

All business and financial interactions with Niger are prohibited, and the state's assets in commercial and central banks are frozen.

"A key factor in the downgrade is also the deterioration of Niger's institutions and governance, as reflected in the suspension of constitutional order, with immediate implications for the government's access to international donor support and security cooperation," the rating organization stated.

The Niger insurgency started late in July. General Tiani was elected as the new leader of Niger on July 28.