Sorry Creditors, We Can't Pay You

African nation Ivory Coast said it is unable to make debt payments for the rest of the year, and is seeking “a complete reassessment” of $2.3 billion of Eurobonds. The move stems from the massive fighting the country has seen since the election.

Civil war broke out in the country former President Laurent Gbagbo refused to cede power to Alassane Ouattara, who was recognized as the winner. Gbagbo was captured in April, and Ouattara took over. The country did not make interest payments in January and June, and thus owes creditors some $58 million.

“The severity of the shock to the economy in 2011 requires a complete reassessment of Cote d'Ivoire's payment capacity,” Finance Minister Charles Koffi Diby said in a statement e-mailed today by Lazard & Co. and obtained by Bloomberg. Lazard is advising the nation.

The government said it expects GDP to fall by 6.3% mostly due to the disruptions stemming from the civil war. The country plans to make interest payments on its debt starting next year.