President Biya okays1700 billion FCfa loan

President Paul Biya has permitted the government to negotiate concessional and non-concessional borrowings of a total amount of 500 to 1200 billion FCfa respectively, according to a decree signed on Thursday.

According to Paul these negotiations are under conditions safeguarding the financial interests of the state and its economic and political sovereignty.

The Presidential Act, which does not specify the areas of intervention of such loans, modifies and completes certain provisions of the budget law of the country for the current year, which stands in revenue and expenditure at 3746, 6 billion FCfa.

It was noted that oil revenues in the country recorded below a realization of 31.3% (32.1 billion FCfa) in the first quarter of 2015 because of the fall of the global price of crude as compared to the levels retained in the finance law, according to a report from the Ministry of finance.

At the same time, courses of the main fields, apart from cocoa and aluminum, have recorded significant declines as compared to the first quarter of 2014.

In all likelihood, the fruit of new concessional and non-concessional borrowing will serve to finance many infrastructure projects under execution.

On the same chapter and throughout the current year, the government of Cameroon intends to issue a total of 320 billion FCfa of government securities made up for 125 billion FCfa of similar Treasury (BTA), for 100 billion FCfa of similar treasuries (OTA) and 150 billion FCfa (OT) Treasury bonds to finance developmental projects.