(Business in Cameroon) - Between January and March 2020, the Cameroonian Public Treasury PLANS to raise a total of XAF305 billion on the public securities market of the Bank of Central African States (Beac).

This will be the most dynamic quarter for the country since the creation of the BEAC’s securities market in 2011. In the past, Cameroon, the main animator of this market, rarely exceeded XAF300 billion per year or an average of XAF75 billion per quarter.

According to the provisional calendar sent to the BEAC by the Cameroonian government, XAF80 billion is planned to be raised this month (January 2020). The funds will be raised through two issuances of 26-week treasury bills operations to raise XAF20 billion and XAF50 billion respectively and the issuances of 52-week treasury bills to raise XAF10 billion.

In February 2020, the country plans to issue 26-week and 52-week Treasury bills in an attempt to raise XAF20 billion in each case. On 20 February 2020, the Cameroonian Treasury will announce the launch of its first Assimilable Treasury Bonds for this year. With the issuance of the 5-year bond, the country intends to raise a total of XAF75 billion from investors active on the money market.

Two 26 and 52-week Treasury bills operations are planned for March 2020, for a total of XAF40 billion, meaning XAF20 billion per operation. On March 5, Cameroon will try to raise XAF50 billion by issuing 3-year fungible treasury bonds. A similar operation is scheduled for March 19, for an envelope of XAF20 billion, this time by means of a 7-year fungible treasury bonds.

Since the end of 2018, CEMAC's liquidity on the money market has fluctuated between XAF950 and 1,100 billion, according to the Director of Treasury at the Treasury Directorate General of the Ministry of Finance, Samuel Tela. Hit hard by the fall in oil prices at the end of 2015, CEMAC states are increasingly rushing to this market in search for funds to finance part of the budget deficits resulting from the drop in oil revenues.

Brice R. Mbodiam