(Business in Cameroon) - Excepting the Central African Republic (CAR), all the countries of the Central African Monetary and Economic Community (CEMAC) are currently oil producers, but have very little liquidity. This is hurting their monetary policy.

“Excess liquidity should be reduced to strengthen monetary policy transmission channels,” stated Mario de Zamaroczy, IMF Head of Mission to CEMAC and Cameroon. This was on November 7, 2014 in Yaoundé, during a working session with the Governor of the Central African States Bank (BEAC).

According to the IMF, CEMAC commercial banks and micro-financial establishments have excess liquidity, while economic activity in the zone remains under-financed. For Mr. Zamaroczy, “banks are not lending enough because they do not have an adequately efficient guarantor system to grant loans.”

He also believes is necessary “to reform the current regional budgetary monitoring framework to ensure the long-term viability of oil-rich countries.” The mission head goes on to suggest the stricter application of prudential standards and accelerate the restructuring of non-viable banks. CEMAC comprises Cameroon, Congo, Gabon, Chad, Equatorial Guinea and the CAR.