In this interview with La Tribune Afrique, Daouda Coulibaly, President of the Professional Association of Banks and Financial Institutions of Côte d'Ivoire (APBEF-CI), discusses, among other things, the measures taken by the government and the BCEAO to support the sector's operations for the benefit of companies during the economic crisis related to Covid-19.

Banks are at the heart of economic response plans against the coronavirus health crisis that is hitting the planet. In Côte d'Ivoire, Prime Minister Amadou Gon Coulibaly announced at the end of March a battery of measures confirmed by the Central Bank of West African States (BCEAO) and aimed in particular at framing the banks' approach during the crisis. These include credit moratoriums and debt restructurings that financial institutions must carry out, in order to help businesses and households keep their heads above water, while keeping a margin for financing essential operations.

La Tribune Afrique - How have banks responded to the measures taken by the BCEAO to mitigate the effects of the COVID-19 health crisis on the economy?

Daouda Coulibaly - The approval of the Central Bank to carry out all our crisis actions helps us to carry out this care more serenely. In the current context, we banks do not have much choice. We are forced to find the best fit to help companies that are in difficulty and that are our customers. The extension of deadlines is one of the solutions we had proposed. When a company that does in the hotel industry cannot honor its commitments because of the crisis, the bank has two choices : either it sues the company, or it tries to restructure its credit. We opt for the second option because, despite their good faith, the crisis means that some companies are unable to pay.

If we did not have the approval of the Central Bank and the banks deliberately granted moratoriums, these customers - companies and households - would be considered dubious customers, contentious customers. In the current context, with the Central Bank, a special chapter is opened, allowing these customers in difficulty due to COVID-19, not to be considered as doubtful customers. This is why we can welcome the authorities' approach.

Are there guarantees for banks ?

This provision does not offer a guarantee to banks. Among the measures announced by the Prime Minister [Amadou Gon Coulibaly, Editor's note], is a support plan for companies at the rate of 100 billion CFA francs and 150 billion CFA francs for large companies and SMEs respectively. We are looking with the government to determine the mechanism that will allow us, as banks, to be able to support as many businesses as possible, while avoiding getting into difficulties. The Prime Minister also spoke about the SME Guarantee Fund. We will see with this Fund what to do to take advantage of its guarantee for the credits but also the restructuring that we will carry out during this period. Finally, I know that donors are also looking at how to support the private sector.

The BCEAO has boosted from 340 billion CFA francs to 4,750 billion the weekly resources made available for the refinancing of banks. Is liquidity risk ruled out ?

Generally speaking, we don't have a rush on liquidity yet. I'm not saying it couldn't come. It is in anticipation of such a risk that the Central Bank has anticipated by increasing the refinancing capacity of banks. Thanks to this system, banks will be able to have what they need in this context of crisis.

Companies do not hide their concerns. What does the banking sector expect in the coming weeks or months?

If companies are worried, banks can only be worried. Banks are the receptacle of all the difficulties arising from the economy during the pandemic. Consider sectors such as hotels and restaurants that are being hit hard by the crisis. The banks that have financed these companies will feel the effects of their difficulties. Ivorian exporters cannot ship their goods,... All this will have an impact on the banks' income statements.

And that's not all. We started 2020 with forecasts in terms of budgets, development,... However, the companies in our client portfolios may postpone their investments. That is, even if the company knows that it is capable of coping with this crisis, its plans can be postponed to next year or later. On the other hand, it is possible that after three to six months, some companies will get by and others may go bankrupt. The urgency today is to make sure that we get through this stormy period in the best way.

As banking institutions, we are aware of our role as a public service. That's why we remain open and continue to look with our customers, but also with the state, how to get out of this difficult situation. We hope to get there very quickly.