CPDM Crime Syndicate repays CFA39.8bn debt with new borrowings

On April 17, Cameroon reimbursed CFA39.8 billion on the public securities market of the Central African States Bank (BEAC). Renowned for its solvency since the establishment of this market nearly 13 years ago, Cameroon used its usual borrowing strategy to make this repayment.

To this end, two new issuances of fungible Treasury bills (BTA) were carried out on April 15, two days before the repayment date. These issuances, consisting of securities with maturities of 26 weeks for CFA40 billion and 52 weeks for CFA25 billion, raised CFA49.4 billion from investors. This sum not only covered the due repayment but also generated a cash surplus of CFA10 billion for Cameroon.

The interest rates applied in these operations reflected the increasing tension in the market, which has seen its requirements rise over the months due to a restrictive monetary policy. Cameroon offered an average interest rate of 6.3% on the 26-week BTAs and 6.5% on the 52-week ones. The rates are significantly higher than the 3% ceiling commonly practiced by the Cameroonian Treasury on these securities a few years ago.

Source: Business in Cameroon

Article published on CameroonConcordNews.Com

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