Yaoundé - 08 December 2019 -

Cameroon: Public debt rose by 37% in 2 years due to economic program with the IMF and statutory advances to BEAC

Cameroon: Public debt rose by 37% in 2 years due to economic program with the IMF and statutory advances to BEAC
  • Comments   -   Wednesday, 09 October 2019 14:01

(Business in Cameroon) - Within 2 years, Cameroon’s publicly guaranteed debt rose by 37%. This was revealed by the minister of finance Louis Paul Motazé (photo) during his address, prior to the budget orientation debate, before the parliament on July 8, 2019, in Yaoundé.

According to the official, this steep rise in public debt is due to various events and decisions that affected public finance. First was the signature, by Cameroon, of a 3-year economic and financial program with the IMF. This program, which will be completed this year, has, according to Louis Paul Motazé, led to more than XAF714 billion of budgetary support to Cameroon.

Next, the minister explained, Cameroon had to consolidate its statutory advances to BEAC into a structured debt of XAF557 billion.

In addition, apart from the XAF200 billion bond issuance on the Cameroonian financial market in 2018, the country had to raise other funds, external notably, to continue its large infrastructure projects like those in the framework of the AFCON2021.

Louis Paul Motazé indicated that to avoid being over-indebted, the government was planning to implement a rigorous and controlled debt policy, in the coming three years, to mitigate the middle-term vulnerability.

Let’s note that on April 30, 2019, Cameroon’s public debt was estimated at XAF7,557 billion, up by 3.3% compared with the level at end December 2018 and 15.5% compared with the year over year level. The debt, which represents a bit more than 35% of GDP, is still sustainable since the CEMAC region’s convergence criterion set the cap at 70% of GDP.

Brice R. Mbodiam

On December 4, 2019, the Cameroonian Treasury proceeded to the issuance of a 26-week fungible treasury bills on the market of the Bank of Central African...
In Cameroon, 35% of the 835 gas stations in operation as of October 28, 2019 (for the 54 state-approved companies), are located in rural areas. This was...
In Cameroon, the national drinking water production increased from 731,080 m3/day to 824,456 m3/day between 2018 and 2019, according to recent data from...
In Cameroon, the Ministry of State’s Property and Land Tenure recently granted an additional 2,000 hectares of land to Société Africaine forestière et...

Mags frontpage

Business in Cameroon n81: November 2019

The growing weight of Moroccan banks in Cameroon

Made in Cameroon products gradually take over supermarkets

Investir au Cameroun n91: Novembre 2019

Le poids croissant des banques marocaines au Cameroun

Le Made in Cameroon progresse dans les supermarchés