Total public debt outstanding is equivalent to 20% of GDP - CAA

The autonomous sinking fund (CAA) has just published the situation of the public debt of Cameroon. The evaluation that accounts for the second quarter of 2014 is divided into four main parts.

By June 30, 2014, the stock of public debt was estimated at 2900 billion F versus 2790 billion F in the previous estimate, in comparison with last year, this figure represents an increase of 481 billion.

In detail, this envelope is composed of 73.2% of external debt ($ F 2124 billion) and 26.8% of domestic debt (which represents 777 billion). During the second quarter, loans by non-resident creditors amounted to 101 billion. Residents, meanwhile, have been borrowing 45 billion.

On this chapter, the combination of the first two quarters of the year stood at 228 billion, from external donors and 70 billion received indoors, which corresponds respectively to 79.2% and 25% of the budget estimates made in this regard in the Finance Act and the strategy of debt for the current year.

In the column of repayments, the settlement of the debt service (conventional sum which must regularly pay the debtor to get themselves out of debt) is estimated at 96.7 billion for the period of April-June 2014.

It is therefore in an increase of 5.7% from the previous quarter. Moreover, the repayment of short-term debt (like Treasury bills) of $ 44 billion continues systematically via the account of Cameroon at the Central Bank.

Analysis that the CAA noted firstly that the portfolio average interest rate is 2.1%. External debt, due to the large number of concessional loans (lower-paid), is 2%.

On the other hand, the domestic debt interest rate is about 2.2%. Total public debt outstanding is equivalent to 20% of gross domestic product, of which 14.5% comes from 5.5% of national and foreign loans.

Taking into account the proportion of variable interest loans (15.3% of all, against 6% in June 2013), the CAA provides that debt service will be affected by foreseeable variations.

However, Cameroon debt remains viable, even if the risks are passed low to moderate due to a shock awaited on revenues in 2016.