(Business in Cameroon) - In Cameroon, the government estimates its borrowing needs (budget support included) over the 2020-2022 period at XAF3,440 billion. The information is contained in the background note published by the Ministry of Finance, on April 1, in the framework of its coming three bonds.

According to the background note, over the stated period, 77% of the said amount will be raised on external markets (25% denominated in US dollars). This represents XAF1,950 billion (XAF650 billion in 2020, including XAF300 billion as concessional loans and XAF350 billion as non-concessional loans).

Twenty-three percent (23%) of the debt will be denominated in local currency (domestic debt). The domestic debts will amount to XAF1,030 billion (including XAF350 billion in 2020).

Publicly guaranteed debt represents 0.4% of the overall estimated borrowing needs and amounts to XAF120 billion (including XAF40 billion in 2020).

During the 2020 fiscal year, the note adds, the country plans to raise XAF1,217 billion (XAF100 billion of budget support included) of the overall XAF3,440 billion.

The document indicates that those domestic and foreign borrowings, as well as budget supports, will fund the implementation of several projects and short-term cash needs.

It also adds that the new borrowing ceilings were set by taking into account the country’s repayment capacity and the government’s will to keep the debt sustainable while reducing the risk of debt distress (already deemed high).

S.A.