Cameroon’s government has been authorized to borrow up to 200 billion CFA francs ($348 million) from international financial markets to address treasury gaps in fiscal year 2025.
According to a presidential decree, Finance Minister has the green light for this external borrowing.
Kelly Mua Kingsly, Head of Finance Operations at the Ministry of Finance, indicated that syndicated loans are the most likely instrument due to urgency and flexibility.
Kingsly also mentioned potential consideration of concessional loans and treasury bonds on the BEAC market.
However, he deemed Eurobonds less probable due to high global interest rates and other market factors.
This borrowing plan arises from slow external financing disbursement and revenue mobilization delays, particularly in non-oil tax collection.
Tight regional monetary policy has caused a liquidity squeeze in Central Africa, impacting Cameroon’s treasury.
Officials aim to diversify borrowing sources to avoid hindering private sector investment through excessive domestic borrowing.
Cameroon has recently used both domestic and external loans to cover budget deficits.