Gov't raises FCfa 7 billion on the BEAC securities market

It was only narrowly that the Cameroonian Treasury succeeded in raising the entirety of the FCfa 7 billion sought during its operation of issuance of fungible Treasury Bonds (BTA - bons du Trésor assimilable) last 16 November, in the public securities market of the Central Bank of CEMAC states.

According to the BEAC communiqué, which has just been published in this regard, the coverage rate of Cameroonian demand was just 100.6%, well below the 300 to 500% which the investors in this securities market had often accustomed the Cameroonian authorities to. Moreover, the investors proposed financing to Cameroon at an average interest rate of 2.5% last 16 November, against at most 2% in the past.

This drop in investor interest for Cameroonian public bonds can however be explained by a loss of momentum in the market at this year end. Indeed, the BEAC securities market has been abundantly solicited since the beginning of this year, by five of the six CEMAC countries, all gripped by cash flow problems due to the fall in world crude oil prices.