“The Treasury of the Republic of Cameroon has proceed on Wednesday, June 17, 2020 to the issuance, by auction, of the Assimilable Treasury Bonds”. This is the substance of a press release from the country’s Finance Ministry revealed by the Bank of Central African States BEAC.
According to this press release, the volume of the operation is 25 billion FCFA. The Assimilable Treasury Bonds thus issued have a nominal value of 10,000 FCFA and a maturity of 7 years. Legal or natural persons wishing to acquire them have until 9 am, this Wednesday, June 17, 2020 to subscribe to credit institutions in the sub-region approved as Specialists in Treasury Securities (see list opposite) by the minister in charge of Finance of Cameroon.
Since April 2020, the public treasury has been requesting the BEAC securities market, as part of a vast fundraising program for a total amount of CFAF 220 billion. The Cameroonian Parliament had in fact, within the framework of the Cameroon Finance Law for the financial year 2020, authorized the government, “to use issues of public securities, in particular Treasury bonds, for the purposes of financing projects of development, for a maximum amount of 320 billion FCFA ”.
These financings, along with others, were intended to help meet the financing and cash flow needs of the State of Cameroon, then valued at 1 304.5 billion FCFA.
Mainly due to Covid-19, which reduced the State’s budgetary space, on June 3, 2020, this Finance Law was modified by an order of the President of the Republic, which now assesses this need for financing at 1,816 billion FCFA. Consequently, the President of the Republic had, within the framework of this amending ordinance, to authorize the government “to resort to issues of public securities, in particular Treasury bonds, for the purposes of financing development projects, for a maximum amount of 420 billion FCFA ”.
On June 3, 2020, the Cameroonian public treasury once again set out again on the Beac securities market, as part of the program launched before the presidential ordinance. The public treasury hoped to raise 20 billion FCFA, it raised 19.6, representing a coverage rate of its needs of 98%. The operation of June 17, 2020 should allow him to complete this program, before possibly initiating another, to align with the new financing and cash needs of the State of Cameroon.
As a reminder, and according to the Ministry of Finance, Cameroon has already raised, 2,544.6 billion FCFA of Treasury bills assimilable since 2011 on the BEAC market.
