(Business in Cameroon) - The Cameroonian government paid CFA1,175 billion for its debt obligations in 2022, the Autonomous Depreciation Fund (CAA) revealed in a recent note.
Up 14% compared to the previous year, the debt service for 2022 included CFA980.1 billion in principal and the remaining in interest. CFA743.8 billion went to international lenders and CFAF431.3 billion to local creditors. "The repayments of debt services that were relieved during phases I and II of the Debt Service Suspension Initiative (DSSI) by the G20 and Paris Club member countries began in 2022," CAA said to justify this increase.
As a reminder, the DSSI was launched in April 2022 to help beneficiaries navigate the Covid-19 pandemic. It has helped developing countries to cope with their cash flow difficulties due to the additional expenses that came with the crisis by negotiating the postponement of their debt repayments with developed countries. Under this program, Cameroon has benefited from a deferral of CFA218 billion on its external debt service between 2020 and 2021, according to the Paris Club.
The higher debt service in 2022 can also result from the appreciation of the U.S. dollar against the CFA over the period. In July 2022, for example, Cameroon paid at least CFA3 billion more due to the rise in the dollar, since nearly 21% of the country's debt is denominated in the U.S. currency.
Translated by Firmine AIZAN
Written in French by Cédrick Jiongo