Yaoundé - 19 October 2019 -
Public management

Cameroon will “encounter tremendous difficulties” in timely debt servicing till 2026 (government)

Cameroon will “encounter tremendous difficulties” in timely debt servicing till 2026 (government)
  • Comments   -   Tuesday, 08 October 2019 16:00

(Business in Cameroon) - At a little more than 35% of GDP in late April 2019, Cameroon’s public debt is still sustainable. Indeed, according to the convergence criteria within CEMAC, the max should be 70% of GDP.

Despite the sustainability of its debt, Cameroon is ranked as a country with a high risk of debt distress by Bretton Woods institutions because of its growing debt ratio recently.  

This debt status was confirmed, on July 8, 2019, by Cameroon’s minister of finance Louis Paul Motazé during the presentation of the 2020 initial budget proposal. This presentation, made before the parliament, was in the framework of the first-ever budget orientation debate in Cameroon.

The high risk of debt distress is justified by the overrun, since 2018, of two liquidity ratios namely, the debt service ratio to exports revenues as well as the debt service to revenues ratio. This means that from 2018 to 2026, the public treasury will encounter tremendous difficulties in fulfilling its commitments, the timely payment of debt servicing notably,” the official revealed.

To break free from this perpetual curse of public debt, the government suggests the implementation of “a rigorous and controlled debt policy” in the next three years, “to reduce middle-term vulnerability,” he added.

Let’s note that on April 30, 2019, Cameroon’s publicly guaranteed debt was XAF7,557 billion. According to figures published by the ministry of finance, it was 3.3% up compared with the level at end of December 2018 and 15.5% up year on year.  

Brice R. Mbodiam

Between August 4, 2016, and August 4, 2019, under the economic partnership agreement with the European Union, there were four main suppliers for products...
While the lot 4 (44.9-km Yoko-Lena section) of the Nationale n° 15 Batchenga (Centre)-Ntui-Yoko-Lena-Tibati (Adamaoua) has been completed already,...
At the end of the ordinary meeting of the Central African Monetary Union (UMAC)’s ministerial council, in Yaoundé, on October 2, 2019, CEMAC authorities...
Cameroon Civil Aviation Authority (CCAA) recently published the winter 2019/2020 flying schedule of carriers operating in Cameroon. For the winter, which...

Mags frontpage

Business in Cameroon n80: October 2019

Agribusiness: Brazil ready to show Cameroon the way to higher spheres

Reviewing the state of things in the North and Far North

Investir au Cameroun n90: Octobre 2019

Le coût faramineux de la « crise anglophone »

Décollage réussi pour la Transahélienne de Camair-Co