2023-11-04 16:24:00
(Ecofin Agency) – The loans taken out by Cameroon mainly financed structuring projects. The country’s debt level remains below the CEMAC convergence criterion which prescribes a public debt threshold below 70% of GDP.
Cameroon disbursed 98.1 billion FCFA in September 2023 to pay off its public debt, excluding outstanding amounts and repayment of assimilable Treasury bonds (BTA). The information comes from the economic note of October 30 issued by the Autonomous Amortization Fund, the body in charge of managing the public debt. 70.5 billion FCFA were devoted to external debt and 27.7 billion to domestic debt, i.e. a ratio of 73.6% to 26.4%.
From January to September 2023, Cameroon disbursed 896.1 billion FCFA in debt service, including 76.7% repayment of principal and 23.3% repayment of interest and commissions. 642.7 billion FCFA went to the external debt and 253.4 billion to the internal debt.
The CAA specifies that it no longer has the slightest payment arrears concerning the external debt. This did not prevent the rating agencies Standard and Poor’s and Moody’s from lowering Cameroon’s rating a few months ago for late payments on its bilateral debt, which creates the risk of seeing the interest rate on future loans get up.
But its CEO, Adolphe Noah Ndongo, reassures: “ Despite this rating, financial players, both nationally and internationally, continue to have confidence in Cameroon.» he declared in an interview withCameroon Tribune , ensuring that the country will continue to honor its commitments. For the 3rd quarter of 2023, it is planned to repay 386.8 billion FCFA, including 306.4 billion for the external debt and 80.4 billion for the domestic debt.
The outstanding public sector debt as of September 30, 2023 is approximately FCFA 12,510 billion according to the CAA. Representing 43.9% of Cameroonian GDP, it is up 1.4% compared to August 2023. An increase favored by the increase in central administration debt, which alone makes 92.9% of the outstanding amount. At the end of September, it amounted to 11,623 billion FCFA (or 40.8% of GDP).
« This quarter-on-quarter increase is explained by the accounting of public securities of 176.7 billion FCFA issued by auction in June and July 2023», Supports the CAA. Invest in Cameroonnote moreover that the outstanding debt of the central administration is divided into 70.4% external debt and 29.6% domestic debt, including outstanding debts of more than 3 months.
« In truth, we have a substantial debt margin to finance other projects and investment programs that bring growth» added reassured Adolphe Noah Ndongo.
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