(Business in Cameroon) - Between 2016 and 2018, the volume of non-performing loans in the portfolio of banks operating in the CEMAC region grew by 6.3%. According to the report on CEMAC financial stability recently published by the Bank of Central African States (BEAC), in 2016, those non-performing loans were 14.9% of gross loans while in 2018, they grew to 21.2%.
"The segments which increased the most are the outstanding receivables (72.7%), long-term receivables (45.1%) and to a lesser extent, doubtful receivables (14.3)," the report points out.
It should be recalled that the high level of non-performing loans in the portfolio of banks operating in the CEMAC region is proof of the disaffection borrowers have for credit institutions in the region. In addition to high-interest rates, credit institutions often demand guarantees- that borrowers deem exorbitant- to protect themselves from any risk. This situation limits access to credit in the community space.