IMF states Cameroon runs high risk of over-indebtedness

The International Monetary Fund has recently sent a statement to the Cameroonian government for preserving debt sustainability by strictly respecting the disbursement plan for loans contracted but not disbursed.

The board of directors of the International Monetary Fund revealed in the statement that the financial institution, after having noted that Cameroon ‘runs a high risk of over-indebtedness’, also invites the authorities to limit non-concessional borrowing to macro-critical projects, to which no concessional financing is available.

“Improving the business climate and governance is essential to promote inclusive growth led by the private sector,” the International Monetary Fund (IMF) said calling in particular for bold measures aimed at strengthening contract enforcement, improving compliance with the recommendations of the Extractive Industries Transparency Initiative (EITI), the reduction of non-performing loans and solving it from the equation of troubled banks.

The financial institution stated that the Cameroonian authorities must immediately tackle the financial and fiscal risks associated with the National Refining Company (Sonara), victim in late May 2019 of a serious fire that decimated most of its production plateau, its restructuring should be based on an in-depth cost-benefit analysis of all available options, APA News noted. The statement revealed new measures that are intended to diversify the export base and improve the efficiency the financial and fiscal risks associated with the National Refining Company (Sonara), victim in late May 2019 of a serious fire that decimated most of its production plateau, its restructuring should be based on an in-depth cost-benefit analysis of all available options.