Yaoundé - 25 April 2024 -

Cameroon's debt servicing hit CFA98bn in September 2023

Cameroon's debt servicing hit CFA98bn in September 2023
  • Comments   -   Friday, 03 November 2023 18:00

(Business in Cameroon) - Cameroon spent a total of CFA98.1 billion on debt servicing in September 2023, excluding outstanding payables and repayment of fungible Treasury bills (BTA), as indicated in the national sinking fund (CAA)’s monthly report published on October 30.

Out of this sum, CFA70.5 billion went towards settling the country's external debt, while CFA27.7 billion was allocated for domestic debt settlement, excluding outstanding payments and BTA repayments. This shows that external debt constituted a significant 73.6% of the debt servicing, with domestic debt making up the remaining 26.4%.

The cumulative debt paid by the State of Cameroon during the period from January to September 2023 reached CFA896.1 billion. Within this figure, 76.7% represented principal repayments, and the remaining 23.3% accounted for interest and commission repayments. Specifically, CFA253.4 billion was designated for the settlement of domestic debt, and CFA642.7 billion for external debt.

The sinking fund's report emphasized that there were no outstanding external debt arrears, affirming that the country had met its external debt obligations without delay. Yet, credit rating agencies, including Moody's and S&P, downgraded Cameroon's rating, citing delays in external debt settlements, potentially leading to higher interest rates for future borrowings.

Addressing this issue, Adolphe Noah Ndongo, the Managing Director of CAA, mentioned in an interview with Cameroun Tribune on September 28 that "despite this downgraded rating, financial players, both national and international, continue to show interest in Cameroon." He further assured that Cameroon remains committed to honoring its obligations. As part of this commitment, debt servicing for the third quarter of 2023 is scheduled at CFA386.8 billion, including CFA306.4 billion for external debt and CFA80.4 billion for domestic debt.

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