Cameroon plans to allocate CFA110 billion in 2025 to pay off public sector debts, a 120% increase from 2024. This funding is part of a broader strategy to manage debt and restore fiscal order. Delays in payments have reportedly hindered business operations, and the government aims to resolve these debts promptly to support economic growth.
The Cameroonian government intends to allocate CFA110 billion in 2025 for paying off public sector debts owed by various entities, including local governments and state-owned organizations. This allocation represents a significant increase of 120% from the CFA50 billion designated for 2024, as stated by Finance Minister Louis Paul Motaze.
The allocated funds are part of a broader strategy aimed at managing the country’s debt repayment obligations. Minister Motaze mentioned that the payment plans for additional debts are being organized to ensure that disbursements commence promptly at the start of 2025. This includes settling CFA121 billion in commercial debts, CFA9 billion in rental commitments, CFA16 billion in academic liabilities, and CFA5.5 billion in social debts, totaling CFA261 billion.
This initiative is integral to efforts aimed at stabilizing public finances. “The government is committed to restoring fiscal order by conducting a comprehensive audit of floating debt accumulated between 2000 and 2019,” declared Minister Motaze during the inauguration of the new Douala Treasury. The overarching aim is to mitigate public debt risks which could jeopardize budget stability and the financial integrity of the government.
The Minister pointed out that delays in payments can severely impact businesses, affecting their access to credit, financing costs, and ultimately impacting investment and employment, which are crucial for economic growth. Apart from tax and customs debts, which will be addressed over seven years, all other obligations are set to be cleared between 2024 and 2026. This endeavor is designed to alleviate financial pressures on businesses and service providers owed funds by public entities.
In summary, the Cameroonian government’s allocation of CFA110 billion for public sector debt clearance in 2025 reflects a significant policy shift aimed at restoring fiscal stability. Minister Motaze’s assurance of timely payments and comprehensive audits illustrates a robust commitment to addressing accumulated debts and enhancing the business environment. This strategy is expected to mitigate risks and foster economic growth while ensuring accountability in public finances.
Original Source: www.businessincameroon.com
