Cameroon's external debt reaches FCFA 3 811 billion

The Caisse Autonome d'Armortissement (CAA) published its 15th cyclical note on Cameroon's debt, in September 2015.

According to the report, the Cameroon government's bond fund in June 30, 2015, reached FCFA 3811 billion. Foreign debt amounted at FCFA 2 783 billion.

The Le Jour newspaper reported on October 23, 2015, that the publication of this cyclical rating is interested in the development of Cameroon's debt since the creation of the CAA in 1985.

The newspaper added that the Economic crisis bursting in 1986 "doubled the total external debt in 5 years with FCFA 2 262 billion. This was more than the FCFA 4592 billion in 1990."

Four years later, the external debt of the country under structural adjustment has reached the historical peak of FCFA 6035 billion due to the devaluation of the FCFA.

"About the explosion of Cameroon's debt," the newspaper specified that "it is in no way due to loans that the state would have done at that time, but it's more of its inability to pay back; all coupled with monetary fluctuations."

Nonetheless, the 'explosion' of Cameroon's debt is bound to lose its credibility with creditors for the next 12 years. But in 2006, the country reached the completion point of the HIPC Initiative "which induced debt relief." Thus, debt fell to FCFA 1991 billion, reaching the lowest level ever, said Le Jour.

Alongside the refunds, the state has raised the debt to the point where in June 2015, the public debt is rising to FCFA 2 783 billion. The government said that "we must borrow to finance development, as our own resources cannot afford to finance structural projects."

The pace of debt has been occurring since 2009. According to the newspaper, "the state still exceeds the annual ceilings that it has even set." In 2010, 2011 and 2012, this ceiling was FCFA 200 billion; gold loans were FCFA 768 billion, FCFA 1 180 billion and FCFA 8 98 billion respectively. However, the pace was maintained in 2013, 2014 and 2015.

During these years, Cameroon diversified its creditors to the point where France ceased to be the main creditor of Cameroon. In 2012, France was overtaken by China which then held 24.3% of the external debt of Cameroon against 21.5% for France.

However, for the economist Ariel Ngnintedem, "the most important thing is not the money borrowed by Cameroon, but how it is used; which is actually the problem."