With a Debt of Fcfa 6527bn Cameroon is not too Indebted

- CAA

Louis Paul Motaze, Minister of Finance

The National Sinking Fund known in French as Caisse Autonome d’Amortissement, CAA, the institution that manages the country’s debts, has informed public opinion that Cameroon’s total debt as of the 31st of May 2018 is estimated at 6,527 billion Fcfa (32% of the GDP), as against 5,419 billion Fcfa (28% of the GDP) at the same period in 2017.

            According to authorities of CAA, “with an indebtedness rate of 32% as of 31 May 2018, Cameroon has respected the norm fixed for countries of the CEMAC zone which authorizes a public debt ratio of up to 70% of the GDP. This means that Cameroon still has a wide margin of borrowing possibilities open to it and still has latitude to borrow more and finance its investment projects.”

            Detailing out the public debt due, it emerged that Cameroon has an external debt of 4.956 billion as of 31st May 2018, up from 4,027 billion in about the same period in 2017. For its part, the internal debt stands at 1,571 billion, up from 1391 billion as at 31st May last year.

            Authorities of CAA explain that these evolutions of the public debt are due in part to the consolidation of the statutory advancements by the Central Bank of a direct debt estimated in December 2017 at 577 billion reimbursable in 10 years after a period of grace of four years.