Major public works policies, increased public spending through controlled product prices. In a context of increasing needs for funds in Central African countries, it has become essential for the Economic and Monetary Community of Central Africa (CEMAC) to raise capital on the regional public securities market. The region’s top financiers met in Brazzaville this week.
At this meeting, figures were revealed and a new record was broken: the States of the Economic and Monetary Community of Central Africa (CEMAC) raised more than 7,000 billion CFA francs on the regional market. That is nearly 11 billion euros of outstanding debts. A borrowing capacity considered as a performance, compared to the first fundraisings carried out when the market was created in 2011 “, underlines the press release from the Congolese Ministry of Economy and Finance.
In the last five months alone, almost one million euros have been borrowed on this market, a level of debt that reveals the demand from States. An amount used in particular to finance their cash flow needs.
However, the borrowing targets are not always met, because today, commercial banks are reaching their maximum lending levels, underlines the specialized media, Sika Finance. These banks are the main creditors of Cémac
In order to remain within the imposed rules of prudence, the room for maneuver of banking establishments is now very limited. The solution for CEMAC States now lies in the investment of private actors who remain, for the moment, reluctant to lend.
- RFI
