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Cameroonian government boosts struggling BC-PME’s capital to XAF20bln from XAF10bln

Cameroonian government boosts struggling BC-PME’s capital to XAF20bln from XAF10bln
  • Comments   -   Monday, 14 January 2019 16:50

(Business in Cameroon) - Cameroonian Bank for small and mid-size companies (BC-PME) which has been facing financial difficulties, has seen its capital increase to XAF20 billion from XAF10 billion. The information was relayed by Théodore Nkodo Foumena, the fully-state-owned bank’s board chairman.

This capital hike was motivated by the issue of 1,000,000 new shares worth XAF10,000 each by payments in cash.

Closing the November 16, 2018, Board meeting when the decision was taken, Gilbert Didier Edoa, Secretary General (SG) of the Ministry of Finance (Minfi) who chaired the session, “reassured the Chairman of the Board and the General Management of the Bank, of the commitment and continued support of the Head of State, and of the entire government to BC-PME in the performance of its missions,” reports Mr Nkodo Foumena.

As a reminder, this bank was near bankruptcy after just four years of operation when the government decision came out. As part of the economic program with the International Monetary Fund (IMF) for 2017-20, Cameroon committed to restructuring BC-PME. Back in 2015, on August 30, the Central African Banking Commission (Cobac) reported a breach of the minimum capital representation standard. This means BC-PME did not have the required minimum equity capital.

On August 30, 2018, Cobac, which regulated the banking sector within the Cemac sub-region, opened disciplinary proceedings against the bank and its managers, including DG Agnès Ndoumbé Mandeng, for non-compliance with the terms of an injunction dated 16 October 2017.

According to IMF, the business model of this SME bank has so far remained very evasive.

Sylvain Andzongo

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