Cameroon has earmarked CFA110 billion for 2025 to clear debts owed by public entities, a 120% increase from 2024. This is part of a broader plan to address a total of CFA261 billion in outstanding obligations. Minister Motaze emphasized the need for financial order and the impact of delayed payments on the economy.
The government of Cameroon has allocated CFA110 billion for the year 2025 to settle outstanding debts owed by various financially autonomous public entities, which include local governments, state-owned enterprises, and public service organizations. This allocation represents a significant increase of 120% compared to the CFA50 billion designated for 2024, as announced by Finance Minister Louis Paul Motaze.
The earmarked funds will be utilized as part of a broader debt repayment strategy. Minister Motaze confirmed that efforts to finalize payment decisions for other outstanding debts are currently underway, with disbursements expected to commence early in the year. The debts to be addressed amount to a total of CFA261 billion, which encompasses CFA121 billion in commercial liabilities, CFA9 billion in rental obligations, CFA16 billion in academic arrears, and CFA5.5 billion in social debts.
This initiative is part of a comprehensive plan to improve public finances. During the inauguration of the new Douala Treasury building on March 7, Minister Motaze articulated the government’s commitment to restoring financial order through a thorough audit of floating debt accumulated from 2000 to 2019. The objective is to mitigate public debt, which threatens budget stability and the government’s financial integrity.
The minister acknowledged that delayed payments can have severe effects, impacting businesses’ access to credit, financing costs, investment choices, employment opportunities, banking stability, and overall economic growth. Except for tax and customs-related debts, which will be addressed over a seven-year period, the government intends to settle all other obligations from 2024 to 2026. Minister Motaze underscored that this initiative is designed to provide financial relief to businesses and service providers owed funds by public entities.
In conclusion, Cameroon has committed CFA110 billion for 2025 to address the debt obligations of public entities, representing a significant increase from previous allocations. This initiative is part of a larger strategy to restore financial order and stabilize public finances, with a total outstanding debt of CFA261 billion set for repayment. Minister Motaze emphasized the importance of timely payments for fostering economic growth and financial stability.
Original Source: www.businessincameroon.com
