Cameroon to Allocate CFA110 Billion for Public Sector Debt in 2025

Cameroon is set to allocate CFA110 billion in 2025 to clear public sector debts, marking a 120% increase from 2024. The repayment plan aims to address a total of CFA261 billion in liabilities, with a broader strategy to stabilize public finances and enhance economic growth, as emphasized by Finance Minister Louis Paul Motaze.

In 2025, the Cameroonian government plans to allocate CFA110 billion to address outstanding debts owed by various financially autonomous public entities such as local governments and state-owned enterprises. This allocation reflects a substantial increase of 120% compared to the CFA50 billion designated for 2024, as announced by Finance Minister Louis Paul Motaze.

The CFA110 billion will be part of a more extensive debt repayment initiative. Minister Motaze assured that they are finalizing payment plans for other debts, including CFA121 billion in commercial liabilities, CFA9 billion in rental obligations, CFA16 billion in academic arrears, and CFA5.5 billion in social debts. Altogether, this brings the cumulative debt to CFA261 billion.

This repayment strategy is a component of a broader effort to stabilize public finances. Minister Motaze stated, “The government is committed to restoring fiscal order by conducting a comprehensive audit of floating debt accumulated between 2000 and 2019.” Such measures are deemed essential to mitigate risks to budget stability and enhance the government’s financial credibility.

The Finance Minister further highlighted the negative impact of delayed payments on businesses, which affects their access to credit, increases financing costs, and influences investment decisions. Moreover, this situation has repercussions for employment, banking stability, and overall economic growth in the nation.

Other than tax and customs-related debts, which are slated to be cleared over the next seven years, the government aims to resolve all other liabilities from 2024 through 2026. This initiative is primarily intended to alleviate financial burdens on businesses and service providers that are awaiting payment from public entities.

In conclusion, Cameroon is taking significant steps to address its public sector debt. With an allocation of CFA110 billion in 2025, this initiative signifies a strong commitment to resolving outstanding financial obligations. By conducting comprehensive audits and implementing a structured repayment plan, the government aims to stabilize public finances, enhance credit access, and promote economic growth, particularly for businesses affected by previous delays in payments.

Original Source: www.businessincameroon.com