Commercial Bank Cameroon restructuring to end soon

The end of the restructuction for the Commercial Bank Cameroon could intervene at any time, informed a person close to the banking sector in Cameroon.

"The Bank has already resumed a pace as it may deem normal in its activities. There is however the need for convening a General Assembly which will officially appoint leaders of the Bank", explained the source who required anonymity.

At the Ministry of finance, few people are willing to talk about the issue deemed "quite delicate". In conversations, one learns that some things must be finalised between the regulator of the banking sector in Central Africa, the Banking Commission (COBAC), the Cameroon Government and the majority shareholders prior to reorganization proceedings.

In October 2014, Finance Minister Alamine Ousmane Mey issued a statement extending the mandate of the provisional administrator Martin Luther Njanga Njoh for the sixth time, an extension which, although published in October, was due to end in November 2014. It should be noted that the Bank, whose difficulties in terms of prudential ratios had been highlighted by the Cobac in 2009, was previously controlled by businessman Yves Michel Fotso, who today is being held, under court proceedings for embezzlement and complicity of embezzlement of public property.

The issues relating to this matter are important. The administration has an opportunity to complete the restructuring of the CBC on a successful rescue. Until then, restructurings have cost hundreds of billion CFA Francs to taxpayers, and almst whenever credit institutions have either disappeared, either transferred their assets to new entities. For the moment, nothing indicates that the CBC will be sold, despite a context marked by the appetite of some African banking groups for the Cameroonian market.