Niger missed a USD 38.7 mln payment on a government bond, attributed to regional sanctions following a coup in July. This missed payment brings the total defaulted interest and principal payments on government securities to USD 485 mln. This situation is considered credit negative for banks in Niger and WAEMU. Banks in Niger hold a significant portion of Nigerien sovereign debt, representing a substantial part of their assets. Regional financial institutions, primarily banks outside Niger, hold the majority of the Nigerien sovereign local-currency debt issued through auctions.