This envelope will be used to partially cover next year's budget deficit as well as other financing and cash flow expenses.
Currently under consideration in the National Assembly, the Cameroonian government wants to raise an envelope of 184 billion FCFA from local banks, we learned from the 2022 finance bill.
According to information provided by the invest in Cameroon website, the State plans to use this envelope to partially fill the 2022 budget deficit, as well as other financing and cash expenses estimated at 1,754.5 billion FCFA.
In addition to this mobilization of funds, directly from banks, the State will also solicit credit institutions indirectly, through issues of public securities, the amount of which is projected for 2022 of 350 billion FCFA.
Indeed, according to public financiers, considering that Cameroon will not soon contract a new commercial debt internationally, after the last refinancing of its Eurobond, two possibilities are available to the government to mobilize this envelope.
First there is the sub-regional stock market (Bvmac), where many banks act as stock exchange companies through dedicated subsidiaries. Although the State of Cameroon has turned away from this market since 2019, contacts have recently taken place between the Ministry of Finance and Bvmac officials, in order to study facilities that could allow Cameroon to return to this market, as part of the strategy to revitalize the unified stock exchange of Central Africa.
Then, the envelope to be mobilized in 2022 by issuing public securities can be mobilized on the BEAC securities market, on which banks act as specialists in Treasury securities on behalf of governments. Very active in this market since its launch in 2011, Cameroon has completely refocused there since 2019 (to the detriment of the stock market), including for bond issues, which are long-term loans.