To finance part of its budget estimated at CFAF 4,865.2 billion, the government is seeking CFAF 350 billion in the capital market through the issuance of government securities. The Minister of Finance (MINFI) came to present the project to national and foreign investors on February 9 in Douala.
“In 2021, we will favour long maturities (5 years, 6 years, 7 years and 10 years). The issues will be in instalments of between 20 and 35 billion FCFA at monthly intervals, to extend the long-term issue cycles over the whole year, “said Louis Paul Motaze.
The Minister took the opportunity to reveal to investors the budget financing program. He is counting on the feasibility of the project and especially the good health of the money market of the Bank of Central African States (BEAC).
“The level of liquidity is around 2000 billion FCFA. Moreover, national savings are estimated at around 4000 billion FCFA. The main challenge facing us is therefore to convert this savings into investments. It is in this project that the banks have invited some of their key account clients to present them the opportunities offered by government securities, “said Louis Paul Motaze.
The coronavirus health crisis which has negatively impacted the national and global economy may push bankers, insurers and other financiers to be cautious. But MINFI calls on the investment community to continue to trust the credibility of the state’s signature.
The 350 billion FCFA that must be mobilized will help reduce part of the budget deficit estimated at 1,484.9 billion FCFA. In addition to the issuance of public securities, the State intends to use the pre-project drawing through bank financing and budgetary support for an amount of FCFA 1134.9 billion. Funds that will make it possible to close the budget deficit in 2021
