The Cameroonian government plans to allocate CFA110 billion in 2025 to repay outstanding public sector debts, representing a 120% increase from 2024. This is part of a comprehensive debt management strategy aimed at restoring fiscal order and enhancing economic stability, as ministerial plans to clear all obligations by 2026 unfold.
The Cameroonian government has allocated CFA110 billion for the year 2025 to settle outstanding debts owed by financially autonomous public entities, including local governments and state-owned enterprises. This funding represents a substantial 120% increase from the CFA50 billion earmarked in 2024, as announced by Finance Minister Louis Paul Motaze.
This allocation is a part of a wider strategy aimed at addressing the broader debt repayment plan. Minister Motaze confirmed that the government is finalizing payment decisions for additional debts to commence disbursements early in the year. The outstanding debts comprise CFA121 billion in commercial liabilities, CFA9 billion in rental obligations, CFA16 billion in academic arrears, and CFA5.5 billion in social debts, totaling CFA261 billion.
This initiative is integral to the government’s objectives of improving public finances. “The government is committed to restoring fiscal order by conducting a comprehensive audit of floating debt accumulated between 2000 and 2019,” stated Minister Motaze during the March 7 inauguration of the new Douala Treasury building. The overarching aim is to reduce public debt and mitigate risks to budget stability and the government’s financial credibility.
Minister Motaze recognized that delayed payments adversely impact businesses, affecting their access to credit, financing costs, investment decisions, employment opportunities, banking stability, and overall economic growth. Aside from tax and customs-related debts, which will be addressed over the span of seven years, the government intends to clear all other obligations within the 2024 to 2026 timeframe, with an emphasis on providing financial relief to owed businesses and service providers.
In summary, Cameroon is taking significant steps to address its public sector debt, with an increased budget allocation for 2025 aimed at settling outstanding obligations. This initiative, which includes a thorough audit of past debts, aims to restore fiscal order and provide relief to affected businesses. The government’s proactive approach to managing public debt is crucial for enhancing fiscal stability and promoting economic growth.
Original Source: www.businessincameroon.com
