The move triggered a short rally, but it did not solve the fundamental problem: Credit Suisse last week said that bad debt could be as much as 60% of bank equity.

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The bank has plenty of reserves for bad debt but that takes away from profit, and the ability to invest in new business.

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But Bank of America reported a decline in quarterly profits after it took another financial hit on bad mortgage debt.

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Jean Mazaurelle, the head of the World Bank in Mauritania and the man in charge of overseeing the debt-relief programme, blames bad management rather than lack of cash for many of the country's problems.

ECONOMIST: Mauritania