(Business in Cameroon) - CEMAC’s interbank market is getting more dynamic thanks to the delivered repurchase agreement (repo) mechanism which is a financing technique characterized by an exchange of marketable securities with cash for a fixed period of time under a framework agreement between parties. This was announced by Aboubakar Salao, member of the audit committee of the Bank of Central African States (BEAC).

“Between June and July (this year), 75 framework agreements were signed, including between local and foreign banks,” he said during a “Capital markets in Central Africa: challenges and opportunities” seminar recently organized by the International Finance Corporation (IFC) in Yaoundé. “In July 2018, there was a proliferation of transactions on the interbank market,” he added.

Indeed, explained M. Salao, this mechanism compensated for the lack of secure financial products that were leading the market, insofar as the repurchase agreement allows the lender to automatically transfer ownership of the securities served as collateral by the borrower, once the repayment date of the debt has expired. “We don't even need to go to court to get this transfer of ownership,” concluded Aboubakar Salao.

Brice R. Mbodiam