"(Business in Cameroon) - The impact of this global health crisis, although difficult to determine in terms of scale and duration, will affect the repayment capacity of several debtors. It will consequently deteriorate the quality of loan portfolios and hence the profitability of institutions." This is the diagnosis made by the Central African Banking Commission (Cobac) regarding the Coronavirus crisis that is raging around the world.
Based on that diagnosis, the commission prescribes “caution in the restructuration of loans granted to companies operating in sectors badly affected by the crisis.” Banks should renegotiate the conditions (maturity, interest rates, commissions) and discuss moratoria and grace periods with the said companies, the Cobac adds.
While recommending that banks should not relax "their loan-granting procedures” for companies affected by the Covid-19 crisis, the Cobac stresses that "additional financing or new credit" to these entities "could be part of the loan restructuration process, provided that transparent and prudent risk management is observed," including the debtor's real repayment capacity.