Senate - Bills On Financing the Economy Adopted

The bills governing factoring and dematerialisation of transferable securities adopted on April 4.

The Minister Delegate in the Ministry of Finance, Titti Pierre on April 4, 2014 defended two government bills in the Senate designed to modernize the financing of the country's economy. This was during a plenary sitting of the House chaired by the President, Marcel Niat Njifenji in the presence of the Vice Prime Minister, Minister Delegate at the Presidency in charge of Relations with the Assemblies, Amadou Ali.

The bill governing factoring in Cameroon seeks to improve corporate access to financial resources, especially SMEs /VSEs as it provides them with alternatives to traditional banking products. Factoring is a transaction whereby an enterprise, "the adherent", through a fixed-term written subrogation agreement assigns its receivable to a credit establishment, "the factor", which, in return for remuneration, advances all or part the account of the receivables assigned, whether or not bearing the risk of insolvency of the receivables assigned, depending on the agreement between the parties. The Minister explained that factoring enables rapid financing through cash advances; better management of receivables; effective evaluation of customer portfolios; and efficient prevention of customer risks.

The second bill was to that to lay down conditions for the dematerialization of transferable securities in Cameroon. The issuance of transferable securities in modern States is an efficient means of financing economies and mobilizing long-term savings. According to the minister, dematerialization will help to safeguard assets and transferable security transactions; accelerate all transactions and trade, thus strengthening financial market liquidity; and reduce transferable security issuing and processing transaction costs. Dematerialization will also help to enhance the traceability of transferable securities, thus improving the mastery of transactions and control of tax evasion and finally improve the computerized management of security deposits and trading on stock exchanges most of which use the e-listing system. The two bills forwarded for second reading to the Senate by the National Assembly were adopted without amendments.