Cameroon debt grew by 28.8% over the period 2014-2015

The outstanding public debt of Cameroon amounted to 3811 billion FCFA at the end of June 2015, announced the Autonomous Sinking Fund (CAA), the Manager of the public debt of the country, in its latest statistical bulletin.

This debt now represents 23.4% of the country's GDP, i.e. well below the standard of 70% of the GDP in the CAEMC zone.

However, CAA pointed out that compared with the first half of 2014, Cameroon debt increased by 28.8%, since it was only 2968 billion FCFA in late June 2014, or 19.5 percent of the country's GDP.

According to the IMF, which ceased to worry about the pace of debt of Cameroon for at least 3 years, particularly because of the proportion of the non-concessional debt, the increase in the indebtedness of the country is such that it is expected to reach 38% of GDP in 2019.

“The burden of debt of Cameroon remains low, partly due to the vast relief obtained in 2006, but it grows again at a rapid pace. Debt sustainability analysis shows that the level of risk because of the external debt rose from 'low' to 'moderate', due to the increase of non-concessional external debt.

Based on current trends, the overall public debt should double as a percentage of Gross Domestic Product, between 2012 and 2019,”indicated the Bretton Wood Institution in June 2014, on the basis of an assessment mission in Cameroon.

This forecast is even plausible that Cameroon is engaged in huge infrastructure projects, which require significant funding. From this point of view, head of the Cameroonian State has recently increased the level of indebtedness of the country for the year 2015, to 1700 billion FCFA, including a Eurobond of 650 billion FCFA in preparation.