The Government of Cameroon has signed a 7.4 billion FCFA loan agreement with the European Investment Bank (EIB) for promote trade. The sum with a 7.49% interest rate constitutes the financing of its contribution to the capital of this agency.
The Minister of Economy, Planning and Regional Development Alamine Ousmane Mey sealed the loan for Cameroon while the Director of the Central Africa region of the European Investment Bank , Nikolaos Milianitis represented his organization.
The Minister is upbeat after signing the loan agreement. “Our country’s attractiveness has been enhanced. Therefore, the country will attract more foreign capital which is indispensable for the development of our key sectors. ” He added that, the financial package is “a new decisive step towards the increased mobilization of additional financing that we know is necessary for the successful implementation of Cameroon’s vast public investment programme.”
For the EIB official, “This operation will potentially improve the cost of financing public debt and facilitate the implementation of public-private partnership projects.” Nicolaos Milianitis also believes that, the new financial instruments of the African Trade Insurance Agency allows the State to mobilize more, on more advantageous conditions, the resources necessary to finance economic infrastructure.
The African Trade Insurance Agency facilitates investment and trade in Africa, through an alternative to less costly financing of development projects. The Agency also makes it easier for economic operators to access credit at lower cost and offers suitable guarantee, insurance and financing mechanisms for the creation of new production units and the extension of existing businesses. Member states through this structure reduce borrowing costs. Apart from the European Investment Bank, the World Bank and the African Development Bank are also partners of the African Trade Insurance Agency.