(Business in Cameroon) – The Cameroonian Treasury has repaid CFA168.5 billion in government bonds in the first half of 2024, according to the Sinking Fund (CAA), which manages the country’s public debt. Of this total, CFA8.2 billion was paid as interest on the principal debt, which stands at CFA160.3 billion.
The CAA’s latest report reveals that the interest payments were made in April 2024 for a three-year bond issuance. CFA88.3 billion and CFA72 billion were repaid in May and June 2024, respectively, for the principal of two five-year bond issuances.
Government bonds, known as Treasury Bonds (OTA), have maturities ranging from two to ten years and are used for development projects. In contrast, Treasury Bills (BTA) have shorter maturities of 13 to 52 weeks and are typically used to manage short-term cash flow issues.
Since 2019, CEMAC member states have increasingly relied on OTA for investment financing. Until early 2023, OTA dominated the public debt securities issued by these countries on the Beac market. However, from March 2023 to March 2024, BTA regained prominence.
This dynamic on the Beac public securities market has impacted the Central African Stock Exchange (Bvmac). National treasuries within CEMAC prefer the Beac market due to its competitive costs and greater flexibility. A source at the Cameroonian Ministry of Finance highlighted that an OTA issuance on the Beac market can be completed in just a few days, compared to the longer procedures required by the financial market. Furthermore, the Beac market allows issuers to save up to 2% of the mobilized amount, which is not achievable in the regional financial market.
