(Business in Cameroon) - On October 11, 2017, Cameroon’s public treasury was not able to raise the CFA5 billion it sought through the issuance of treasury bonds, with 52 weeks maturity period, on BEAC’s securities market, an official statement revealed. Let’s remind that BEAC is the central bank of the six countries of the Cemac zone.

Though the subscription rate was 100%, Cameroon’s public treasury got only CFA4.5 billion out of the sought amount. This is due to the high interest rates investors demanded; these rates varied between 3.6% and 4.25%, clearer higher than the average (2.5%) at which Cameroon’s treasury used to raise capital on Beac’s market until 2015. The subscription rate is also lower than the average which ranges around 600%.

As a matter of fact, due to the combined effects of the competition between Cemac’s countries on the market since last year, and low liquidity, revealed by IMF, in the banks of the region, primary dealers, the lenders themselves in this case, became gradually inactive in Beac’s security market which has become a strategic remedy for the zone’s countries faced with the decline in public revenues.  

BRM