The Cameroonian government plans to spend CFA110 billion in 2025 to address outstanding public sector debts, a 120% increase from 2024. This initiative is part of a broader effort to clean up public finances and improve economic stability. Finance Minister Louis Paul Motaze emphasized the need to alleviate the consequences of delayed payments on businesses.
The Cameroonian government intends to allocate CFA110 billion in 2025 for the settlement of outstanding debts owed by various financially autonomous public entities, including local governments and state-owned enterprises. This amount represents a significant increase of 120% compared to the CFA50 billion set aside in 2024, as announced by Finance Minister Louis Paul Motaze.
The allocated funds will play a crucial role in the government’s broader debt repayment strategy. Minister Motaze indicated that payment plans for additional outstanding debts are under review to guarantee that disbursements commence early in the upcoming year. This includes CFA121 billion in commercial liabilities, CFA9 billion in rental obligations, CFA16 billion in academic arrears, and CFA5.5 billion in social debts, with the total outstanding debts amounting to CFA261 billion.
This initiative is part of a larger effort to improve public finances. “The government is committed to restoring fiscal order by conducting a comprehensive audit of floating debt accumulated between 2000 and 2019,” stated Minister Motaze during the inauguration of the new Douala Treasury building on March 7. The aim is to mitigate public debt, which has significant implications for budget stability and the government’s financial reputation.
Minister Motaze also expressed concern about the impact of delayed payments on the economy, noting that they hinder businesses’ ability to access credit, increase financing costs, influence investment choices, affect employment rates, and disrupt banking stability. To address these issues, the government intends to clear all obligations, apart from tax and customs-related debts, within a period spanning from 2024 to 2026. The Minister highlighted that this initiative will provide necessary financial relief to businesses and service providers that have not received payments from public entities.
In conclusion, the Cameroonian government’s commitment to allocating CFA110 billion for public sector debt in 2025 marks a significant step towards addressing outstanding financial obligations. This endeavor aligns with the broader goal of improving public finances and restoring fiscal order while facilitating economic stability and growth. The proactive measures outlined by Finance Minister Louis Paul Motaze aim to alleviate the challenges faced by businesses and bolster overall economic health.
Original Source: www.businessincameroon.com
