Thursday, July 5, 2018

Cameroon’s debt rose to CFA6,527 billion by May 31, 2018

Business in Cameroon  | At May 31, 2018, Cameroon’s direct debt was estimated at CFA6,527 billion (32% of GDP), Caisse autonome d’amortissement (CAA), the organ in charge of the public debt management, reveals. A year earlier, this same debt was CFA5,419 billion (28% of GDP).

According to CAA, this level of debt is still acceptable since, within CEMAC, the public debt could reach 70% of the GDP. “This means that Cameroon still has considerable flexibility to fund its numerous development projects”, the institution wrote.

During the period under review, the country’s external debt was estimated at CFA4,956 billion against CFA4,027 billion during the same period a year earlier. As far as domestic debt is concerned, on May 31, 2018, it was CFA1,571 billion against CFA1,393 billion by May 31, 2017.

The CAA explains that this rise of the public debt is due notably to the consolidation of BEAC’s statutory advances into direct debt estimated at CFA577 billion in December 2017. This debt will be refunded within ten years after a grace period of 4 months.