CMR's external debt reached FCFA 2500b in 2013

Recent debt statistics published and updated on the site of the World Bank revealed that the outstanding amount of foreign debt of Cameroon in 2013 was 4.92 billion $ (near), a figure that registered an increase of 1.17 billion $ (near), compared to 2012.

Even if the volume of this debt seems important, this level of debt is still tolerable when we analyze its components, on the one hand, compared to other economic aggregates, on the other hand.

The first positive point that emerges from this debt is that the incorporated share of obligations in the long term is nearly $4 billion $ (nearly 2000 billion CFA francs). This means that, for the time being, repayment pressure is not yet felt.

There is obviously no risk of insolvency on the 443 million $ (about 221 billion CFA francs) to repay in the short term. Since this debt in the short term is equivalent to 3% of the average GDP over the last 5 years.

Another positive point that emerged from the analysis of this debt is constituted in foreign currency. Even if the $ share has gained grounds at the reference date, the share denominated in euro which is less volatile, still occupies 40% of the global envelope.

Some actors in this area are worried that the state could face a rapid progression of indebtedness of the country. But in the meantime, it would be interesting for the Government to make an assessment of the economic progress registered through this debt far more important considering investments in development projects delaying yet to deliver their first contributions to the consolidation of GDP.

Until then, the margins of Cameroon borrowing remain stable, with average rates of 2.9%, an average maturity of 9 years and a debt servicing which accounts for less than 1% of annual GDP. It is now left for the local Government to transform this asset into a competitive advantage.