Among the African countries most affected by the Coronavirus pandemic, Cameroon has just received significant financial support. The country of Paul Biya was granted a loan of 226 million dollars, estimated at 132 billion CFA francs, from the International Monetary Fund (IMF).
The decision was taken during the board of directors of this international institution and made public on May 4, 2020.
For the IMF, this money will “help Cameroon meet the urgent balance of payments needs resulting from the Covid-19 pandemic”.
In addition, this monetary institution adds that “the outbreak of the pandemic and the shocks of the terms of trade resulting from the sharp fall in oil prices have a significant impact on the economy of Cameroon, causing a fall in the growth of Real GDP ”.
The IMF notes that “the Cameroonian government has taken measures to contain the spread of the disease, increase health care spending, strengthen existing social security barriers and provide support to affected businesses and households”.
“IMF support will help meet immediate external needs and preserve fiscal space for essential health spending related to Covid-19.” It will also help catalyze additional donor support, ” the Bretton Woods institution said.
The IMF also approved the authorities’ request for an extension of the ECF arrangement, due to expire on June 25, 2020, to September 30, 2020 with a rephasing of access.
“Given the sudden and pressing nature of the shocks, accommodative fiscal and monetary policies are warranted to mitigate the human and economic impact of the outbreak. However, the authorities remain committed to their reform agenda under the ECF arrangement. They plan to undertake adjustments to return to the fiscal consolidation path once the crisis abates to safeguard debt sustainability and ensure a strong recovery.
“IMF emergency financing under the RCF will support the government’s efforts to mitigate the impact of the twin shocks. Additional assistance from development partners will be critical to fill the remaining financing need. Strict budgetary controls and transparency will be needed to ensure that the assistance under the RCF meets its intended objectives.”
