The Cameroonian government will allocate CFA110 billion in 2025 to pay off debts owed by public entities, significantly increasing from CFA50 billion in 2024. This is part of a broader strategy to improve public finances and settle total debts of CFA261 billion. Minister Motaze emphasized the importance of timely debt repayment for economic growth and stability.
The Cameroonian government has allocated CFA110 billion for 2025 to settle outstanding debts owed by financially autonomous public entities such as local governments, state-owned enterprises, and public service organizations. This represents a substantial increase of 120% from the CFA50 billion earmarked in 2024, as announced by Finance Minister Louis Paul Motaze.
These funds will facilitate a part of the government’s expansive debt repayment strategy. Minister Motaze noted that discussions regarding the settlement of other outstanding debts are nearing completion, allowing for timely disbursements to commence early in the year. The total outstanding debts encompass CFA121 billion in commercial liabilities, CFA9 billion in rental obligations, CFA16 billion in academic arrears, and CFA5.5 billion in social debts, summing up to CFA261 billion.
This debt repayment initiative is a segment of a broader effort to stabilize public finances. Minister Motaze remarked, “The government is committed to restoring fiscal order by conducting a comprehensive audit of floating debt accumulated between 2000 and 2019.” The objective is to alleviate public debt, which presents risks to budget stability and undermines the government’s financial credibility.
The Minister acknowledged the negative impacts of delayed payments, which hinder businesses’ access to credit and affect financing costs, investment decisions, employment rates, banking stability, and economic growth overall. With the exception of tax and customs-related debts, which will be addressed over a span of seven years, the government aims to resolve all other obligations between 2024 and 2026. This initiative is designed to provide much-needed financial relief to businesses and service providers owed money by public entities.
In summary, Cameroon intends to allocate CFA110 billion in 2025 for settling debts owed by public entities, marking a significant increase from the prior year. This repayment forms part of a wider strategy to restore fiscal order and address public debts that threaten budget stability. The government plans to manage most outstanding obligations by 2026, aiming to enhance financial conditions for businesses.
Original Source: www.businessincameroon.com
