(Business in Cameroon) - The Supervisory Board of the Securities Settlement and Custody Unit (CRCT) reported in a recent statement that the outstanding amount of securities issued by governments on the Beac public securities market has increased by 41.7% between January 2021 and January 2022.
The amount increased from CFA3,323.4 billion to CFA4,708.3 billion over the period. Although no specific reason was given for this sharp increase, it occurred at a time when governments were seeking funding both to continue their Covid-19 vaccination campaign and to strengthen their post-recovery strategy. Moreover, since 2019, almost all CEMAC countries favor the Beac government securities market for long and medium-term borrowing, rather than the sub-regional financial market where costs are higher. This has also contributed to an increase in the outstanding amount of securities issued on the money market in recent years.
According to the central bank, this strategy used by CEMAC countries made the Beac's public securities market now dominated by issues of Fungible Treasury Bonds (OTAs), which are long- and medium-term public securities.