(Business in Cameroon) – After several months of decline, Cameroon’s net bank claims on the state are rising again. According to the Monetary Policy Committee (CPM) report from the Bank of Central African States (BEAC) published on October 14, 2025, they reached CFA2,147.6 billion in May and CFA2,087.8 billion in June 2025, up 4.1% and 5.3% year-on-year, respectively.
This marks the end of a downward trend that began in June 2024, except for a brief 3.4% rebound in July 2024.
BEAC attributes the increase to “persistent public financing needs and the success of government securities issuance on the subregional market.” The Cameroonian Treasury continues to rely on the local banking system for liquidity through direct borrowing and the sale of government bonds.
The same upward trend has been observed across several other CEMAC countries (Cameroon, Congo, Gabon, Equatorial Guinea, Chad, and the Central African Republic) as of June 2025. Banks play a central role as both lenders and Primary Dealers (SVTs), authorized to operate on BEAC’s government securities market.
Created in 2011, this market has become the main domestic financing tool for CEMAC states, led by Cameroon, Congo, and Gabon. “The dynamism of the Treasury securities market, observed for the past four years, has strengthened,” BEAC noted, with outstanding securities rising 26.2% from CFA6,871.7 billion in June 2024 to CFA8,672.4 billion a year later. Funds raised during the period totaled CFA5,127.8 billion, compared with CFA5,028.4 billion the previous year.
While this reliance on the money market helps states meet short-term needs, BEAC cautions against rising risks. “The continuous increase in net claims on states calls for vigilance regarding potential crowding out of the private sector and excessive banking exposure to sovereign risk,” the central bank warned.
An overconcentration of bank assets in government debt could limit credit to businesses and heighten vulnerability if a state defaults.
