The Government of Cameroon raises 335 billion FCFA to settle internal debts, strengthen economy.

Cameroon government has through the Ministry of Finance, MINFI, raised 550 million dollars, approximately 335 billion FCFA, on the international financial market. The money is destined to service internal debts and strengthen the economy.

The money was raised in London in just three days. According to Cameroon’s Minister of Finance, Louis Paul Motaze, the rush for bonds reflects the country’s desirability and credibility in the financial markets.

Minister Louis Paul Motaze, it should be noted, is the head of the government mission in London. They are thought to be completing the fundraiser with bonds.

Minister Motaze stated in a July 31 press release that the bond was issued on the high instructions of President Paul Biya.

He goes on to say “despite the volatile market conditions, the confidence shown by international financial markets, once again demonstrates Cameroon’s credibility and ability to mobilise the investor community to finance the National Development Strategy” .

The member of government added that the funds obtained “will significantly contribute to clearing domestic debts, boosting SME activities, strengthening economic growth, enhancing private sector confidence in the State, and improving business climate”.

Minister Motaze stated in the announcement that the deal was finalized in London on July 31, following negotiations with a group of investors and rating agencies that began on July 29.

According to sources, Minister Motaze met with representatives from rating firms Fitch, Standard & Poor’s, and Moody’s.

The meetings were intended to provide the agencies with appropriate information on the evolution of the Cameroonian economy and to improve their opinion of Cameroon’s credit risk.

According to reports, the minister met with two groups of significant investors who had previously stated their intention to participate in the fundraising.

Eaton Vance, a subsidiary of Morgan Stanley’s investment fund, took part.

Minister Motaze further assured investors of Yaounde’s ability to meet its commitments on schedule.

He also discussed the sustainability of the country’s public debt, which currently accounts for 43% of Cameroon’s GDP.

This, according to the MINFI director, is far lower than the CEMAC’s 70% ceiling.

He also emphasized the economy’s diversification and resilience, as well as the beginning of a number of big economic projects expected to promote growth.