Gabon has secured the backing of approximately ten financial institutions to facilitate the extension of maturities on its regional market debt, as well as to access new financing opportunities. This significant development was announced by the country’s public accounts ministry on Monday, marking a strategic move for the Central African oil producer.

Earlier this month, Brice Oligui Nguema was elected as Gabon's president, a pivotal leadership change that many viewed as a potential turning point in the political landscape following a year and a half of instability stemming from a coup against former president Ali Bongo. His election has raised hopes for fiscal reform and stabilization in a nation grappling with substantial economic pressures.

Since January, Gabon's disbursements from the World Bank have been suspended due to escalating arrears, exacerbating the country’s liquidity crisis. This financial squeeze has pushed Gabon to become increasingly reliant on regional capital markets to address its financing needs. 

In a proactive approach to manage its debt, the public accounts ministry elaborated on a comprehensive plan aimed at optimizing the country’s financial obligations. This initiative seeks to extend the average maturities on treasury bills totaling 592 billion CFA francs (approximately $1 billion), increasing the current maturity period from 2.3 years to an impressive six years. This adjustment will be facilitated through "voluntary exchanges with banks," reflecting a cooperative effort to bolster the nation's fiscal stability.

Additionally, the Gabonese government aims to convert 473 billion CFA francs of short-term loans into government securities, a move designed to provide a stronger foundation for public finances. This restructuring is expected to pave the way for unlocking access to another 338 billion CFA francs in new financing—critical funds for the nation during these challenging times.

"The Republic of Gabon is determined to significantly enhance the profile of its public debt, reducing the refinancing risk associated with its outstanding obligations," the ministry stated. "Through these targeted actions, Gabon aims to create a greater degree of financial leeway in the medium term."

As of February, Gabon’s total outstanding domestic debt stood at 2.196 billion CFA francs, with a substantial portion—1.741 billion CFA francs—set to mature in the near term, primarily within the regional Central African market. The current strategies being employed by the Gabonese government signify a commitment not only to immediate financial repair but also to laying the groundwork for sustainable economic growth in the future.