LONDON, Jan 31 (Reuters) - Ivory Coast's ${esc.dollar}2.3 billion bond due 2032 inched up as investors waited to see if the West African country, caught in a political crisis, would make a ${esc.dollar}29 million coupon payment due on Monday on the bond.
Alassane Ouattara has been recognised as Ivory Coast president by most world leaders after a Nov 28 presidential election, but Laurent Gbagbo retains control of the armed forces and most institutions.
The payment was due on Dec 31, but Ivory Coast had a one-month grace period in which to pay, until Jan 31.
Ouattara's government team said on Friday it could pay the coupon only when Ouattara gained full control of the country's accounts at the West African central bank.
The bond has been trading at record high yields but edged up 0.111 to 36.4 cents on the dollar <XS0496488395=R> on Monday, giving a yield of 16.86 percent.
The bond launched only last year in a restructuring of existing defaulted debt dating back to 2000.
Ivory Coast will be in default if it fails to pay, restricting its access to funds in international markets.
If payment is not made on Monday, creditors could in theory accelerate the bond -- ask Ivory Coast to repay the debt early.
This was unlikely to happen, said Thierry Desjardins, chairman of the London Club committee of commercial creditors which restructured the debt.
"The previous Brady bonds were never accelerated for 10 years," he said.
"I do not expect the creditors to accelerate the bond, not now, not in the present circumstances."
Ivory Coast's debt fell below 20 cents on the dollar after the previous default.
"The pricing could go lower still, but if it does, there are certainly some people who would want to buy the bond on the assumption that they will get paid back eventually, albeit late," said Razia Khan, head of Africa research at Standard Chartered.
"It may make some people look at other emerging market countries and pay more attention to political risk."
(Reporting by Carolyn Cohn and Peter Apps; Editing by Toby Chopra)
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