CFAF 833.7 billion. This is the volume of interbank financing carried out via the repo mechanism delivered on the secondary market for public securities in the CEMAC zone (Cameroon, Congo, Gabon, Equatorial Guinea, Chad and CAR) between January and December 2021. According to the report of the BEAC which reveals this figure, this volume is practically up by 100%, in comparison with the 418.4 billion FCFA recorded on the same market in 2020.
On the basis of this indicator, the repurchase agreement, due to its characteristics which guarantee the proper settlement of transactions, appears to be a catalyst for transactions on the secondary market for CEMAC public securities, which is still considered sluggish in view of the weakness of exchanges of treasury securities current there. Officially, more than 80% of these securities are still held by the banks, which obtained them on the primary market where they operate as specialists in Treasury securities (SVT).
As a reminder, explain the BEAC experts, the repurchase agreement is an interbank financing technique characterized by an exchange of negotiable securities for cash, for a fixed period. This transaction requires the signing of a master agreement between the parties.
This agreement allows the lender to be automatically transferred the ownership of the securities placed as collateral by the borrower, once the date of repayment of the debt has expired. “You don’t even have to go to court to get this transfer of ownership“, points out a regular of this type of operation.
According to BEAC data, the introduction of the repurchase agreement into the financing search system in the CEMAC zone, from the year 2014, had made it possible to boost interbank transactions by nearly 300% in 2019, i.e. 5 years later, recalls Invest in Cameroon.
BRM
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24-12-2014 – BEAC wants to boost the interbank market in the CEMAC thanks to the delivered repo
13-05-2020 – CEMAC: bankers’ rush for repo boosts interbank transactions by nearly 300% in 2019
