The Cameroon government will spend CFA110 billion in 2025 to clear debts owed by public entities, a 120% increase from 2024. This funding is part of a broader debt repayment plan addressing over CFA261 billion in total liabilities, aimed at restoring fiscal order and enhancing economic stability.
The Cameroonian government plans to allocate CFA110 billion for the year 2025 to settle outstanding debts owed by financially autonomous public entities. This initiative, announced by Finance Minister Louis Paul Motaze, represents a significant increase of 120% from the CFA50 billion set aside in 2024. The funding aims to support the government’s comprehensive debt repayment strategy.
Minister Motaze further detailed that the funds would address part of a total of CFA261 billion in outstanding debts, which includes CFA121 billion in commercial liabilities, CFA9 billion in rental obligations, CFA16 billion in academic arrears, and CFA5.5 billion in social debts. Payment decisions for other debts are currently in the final stages to facilitate early disbursement next year.
In an attempt to rectify public finances, Minister Motaze stated that the government is committed to auditing floating debts accrued between 2000 and 2019. He noted that restoring fiscal order is crucial for maintaining budget stability and the government’s financial integrity, emphasizing the risks posed by high public debt.
The minister highlighted the detrimental effects of delayed payments, which can hinder businesses’ access to credit, increase financing costs, disrupt investment decisions, and adversely affect employment and overall economic growth. To facilitate a clear path forward, the government aims to settle most debts between 2024 and 2026, except for tax and customs-related debts that will be cleared over a seven-year period.
In conclusion, the Cameroonian government’s plan to allocate CFA110 billion for debt repayment in 2025 represents a strategic effort to address significant financial obligations by public entities. With a sizable increase from the previous year’s allocation, this initiative is part of a comprehensive approach to restore fiscal order and stimulate economic growth. The government’s commitment to timely payments is expected to alleviate the financial burdens on businesses and enhance overall economic stability.
Original Source: www.businessincameroon.com
