Cemac zone suffers an excess of liquidity

Apart from the Central African Republic (CAR), all the countries of the Central African economic and Monetary Community (Cemac) are currently producing oil and suffer from an excess of liquidity, which interferes with their monetary policy.

"The excess liquidity should be reduced to strengthen the channels of transmission of monetary policy," said Mario de Zamaroczy, head of a mission of the IMF to Cemac and Cameroon.

Indeed, according to the IMF, commercial banks and microfinance of Cemac institutions have excess liquidity, while economic activity in this community area is not sufficiently funded. For Mr. de Zamaroczy, "banks do not lend enough because they do not have a guarantee system efficient enough to grant credits.

Also, he advocated that they must be 'reforming the current regional budgetary surveillance framework for long-term sustainability of the Cemac oil-rich countries. The head of the IMF mission suggests implementing a stricter application of prudential standards and accelerate the restructuring of non-viable banks.