Senate - Finance Minister to Defend Two Bills

The two bills were tabled during a plenary sitting of the House on March 31.

The Minister of Finance, Alamine Ousmane Mey will soon defend two bills tabled in the Senate yesterday, March 31, 2014 during a plenary sitting chaired by the President, Marcel Niat Njifenji. The bills have been forwarded to the Finance and Budget Committee of the Senate for scrutiny before the entire House adopts them.

The Bills

One of the bills is that governing factoring in Cameroon. It seeks to improve corporate access to financial resources, especially SMEs /VSEs as it provides them with alternatives to traditional banking products. Factoring is a transaction whereby an enterprise, "the adherent", through a fixed-term written subrogation agreement assigns its receivable to a credit establishment, "the factor", which, in return for remuneration, advances all or part the account of the receivables assigned, whether or not bearing the risk of insolvency of the receivables assigned, depending on the agreement between the parties. Government in the explanatory statement to the bill states that factoring enables rapid financing through cash advances; better management of receivables; effective evaluation of customer portfolios; and efficient prevent of customer risks.

The second bill is that to lay down conditions for the dematerialization of transferable securities in Cameroon. The issuance of transferable securities in modern States is an efficient means of financing economies and mobilizing long-term savings. Government in the explanatory statement states that dematerialization will help to safeguard assets and transferable security transactions; accelerate all transactions and trade, thus strengthening financial market liquidity; and reduce transferable security issuing and processing transaction costs. Dematerialization will also help to enhance the traceability of transferable securities, thus improving the mastery of transactions and control of tax evasion and finally improve the computerized management of security deposits and trading on stock exchanges most of which use the e-listing system. In the meantime, the Senators will in committee today start to scrutinize the first five bills that have been forwarded to by the National Assembly.