Cameroon to Allocate CFA110 Billion for Public Sector Debt Repayment in 2025

Cameroon plans to allocate CFA110 billion in 2025 for clearing debts owed by public entities, a significant rise from CFA50 billion in 2024. This effort is part of a larger debt repayment strategy aimed at restoring fiscal order and boosting economic stability.

The government of Cameroon has allocated CFA110 billion for 2025 to address outstanding debts of financially autonomous public entities, including local governments and state-owned enterprises. This allocation represents a substantial increase of 120% from the CFA50 billion set aside in 2024, as announced by Finance Minister Louis Paul Motaze.

These funds will facilitate a portion of the government’s comprehensive debt repayment plan. Minister Motaze confirmed that payment strategies for other outstanding debts are nearing finalization to ensure timely disbursements. Notably, this includes CFA121 billion in commercial liabilities and various other debts totaling CFA261 billion.

This repayment initiative is part of a broader strategy to enhance public financial management. During the inauguration of the new Douala Treasury building, Minister Motaze stated, “The government is committed to restoring fiscal order by conducting a comprehensive audit of floating debt accumulated between 2000 and 2019.”

The minister also recognized the adverse effects of delayed payments on businesses, influencing their credit access and overall economic growth. Apart from tax and customs-related debts, the government aims to settle all other obligations from 2024 to 2026, with the broader goal of offering financial reprieve to creditors, including businesses and service providers.

In summary, Cameroon is set to allocate CFA110 billion in 2025 for the repayment of public sector debts, marking a significant increase from previous years. This initiative is part of a larger plan to restore fiscal order and mitigate the negative impacts of delayed payments on the economy. The government’s commitment to settling outstanding debts aims to foster financial stability and economic growth in the region.

Original Source: www.businessincameroon.com