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Quarterly borrowing rate – Cameroon reached the mark of 101.3% in 3 months


In detail, between January and March 2024, four financing agreements valued at 240.7 billion FCFA were signed by the Cameroonian authorities. Of the total amount borrowed during the indicated period, we learn that 75.2% are loans whose interest rate is lower than market rates (concessional financing) and 24.8% are loans respecting market conditions. (non-concessional financing).

If the economic note published by the Autonomous Amortization Fund (CAA) does well to recall that a year ago, Cameroon had signed only one loan agreement estimated at 34.7 billion FCFA on a debt ceiling set at 674 billion FCFA; It is clear, underline the specialists, that Yaoundé will exceed the maximum debt ceiling by the 3rd quarter of 2024.

Concerning the use of borrowed sums, the public authorities are putting forward several projects. As part of the regional project to improve the performance of the Douala/N’djamena rail/road corridor, the Cameroonian government took on debt of 180.98 billion FCFA via the International Association (IDA), a subsidiary of the World Bank and the financing agreement was signed on February 21, 2024. If the government expresses the merits of carrying out this project; other financing agreements were signed, notably those relating to the project to develop 15,280 hectares of hydro-agricultural areas in the divisions of Mbéré, Vina and Faro and Déo, in the Adamaoua region.

A project which will benefit from an amount of nearly 52 billion FCFA, i.e. a buyer’s credit of around 50 billion FCFA and a commercial credit of 1.89 billion FCFA; the two agreements having been signed on January 30, 2024 between the Cameroonian State, the Standard Chartered Bank of London and the United Kingdom Export Finance.

As for the last and 4th financing agreement, it reports an amount set at 7.83 billion FCFA; this dates back to February 6, 2024 and highlights the involvement of Standard Chartered Bank United Kingdom. According to the outline of the agreement, the funds will be used to finance environmental studies of the Ebolowa -Akom 2 -Kribi road.