(Business in Cameroon) - Cameroon’s public treasury will reduce its activities on the financial market, on which it will only issue CFA260 billion’s worth of securities, in 2018. This, after a yearly average of CFA300 billion over the past three years.

This measure, contained in the 2018 finance law which has just been approved by the parliamentarians, is in line with the directives of lenders, such as the IMF, concerned by the pace at which Cameroon has been indebting itself and, at non-concessionary rates more importantly.

The announced reduction in 2018, can also be explained by the increase of the interest rate on financial markets, notably the Central Bank of CEMAC states’ market on which Cameroon has been the leading player since 2011.

Indeed, because of the demand's increase on this market since two years, due to cash-flow issues CEMAC’s countries (Cameroon, Congo, Gabon, RCA, Chad and Equatorial Guinea) are faced with, the interest rate required by investors on Cameroon’s securities is now close to 4%, after having remained at 2.5% for years.   

BRM