Cameroon launches an extensive campaign for its 220 billion CFA francs mobilization operation

As of 1 April, Cameroon started campaigning for the subscription of its 220 billion CFA francs of Fungible Treasury Bonds (OTAs). Through its various media, the Ministry of Finance (MINFI), at the origin of this operation, explains that for these dematerialized securities issued on the money market by auction, subscriptions are made from the date of publication of the press release, that is 5 working days before the auction date.

The 1st issue was auctioned on Wednesday April 8, 2020 before 11:00 a.m.; the 2nd on Wednesday April 15, 2020 before 11h00 a.m. and the 3rd on Wednesday April 29, 2020 before 11h00 a.m. The first issue is 100 billion CFA francs for a 5-year maturity at an interest rate of 5.7%; the second of 70 billion CFA francs for a 03-year maturity at the rate of 4% and the third of CFA francs 50 billion CFA francs for 2-year maturity at the rate of 3.5%.

The targeted projects relating to these funds raising concern the improvement of people’s living conditions around the 10 regions of the country: 73.5 billion CFA francs for sport; 63.2 billion CFA francs for roads construction and renovation and 45 billion CFA francs for other pending projects including sanitary facilities and other priority health programmes.

Subscription and advantages

Who can subscribe? Answer of the MINFI’s operation initiator: “each economic agent/ investor (natural or legal person) who wants to do a safe and profitable investment. The subscription is made through the intermediaries of Specialists in Treasury Values (SVT) such as: Credit Institution; Management and intermediation Companies.”

Regarding the benefits of these operations, MINFI explains that investment in Government Securities are profitable because the OAT’s interest rate payment is higher than those of the rate of return on savings. In addition, the interest of these Government Securities are paid each year on the anniversary day of the value. Finally, interests relating to Online Tourism Agencies (OTAs) are exempted from any tax in Cameroon by the resident and non-resident subscribers.

Apart from being risk-free; the Ministry of Finance states: “OATs benefit from the State’s sovereign guarantee; they provide to subscribers a reliable profitable rate during a specific time; the OTA owners can leave their OTAs at any time at their banks without having a substantial tax relief; OTAs can be allowed to cover the normal commitments of insurance companies, to refinancing at the BEAC, negotiated aspects (selling, buying, guarantee through SVT’s of Cameroon”.

For the 2020 fiscal year, the finance law allows the Cameroon Government to look for finance securities on the market estimated at 320 billion CFA francs for the implementation of growth generating-projects. It is in this context that the Minister of Finance under the high patronage of the President of the Republic wants to mobilize 200 billion CFA francs for OATs.

Signed, Alain Kevin BIYIHA

Related posts

Invest in Cameroon

The Government has embarked on project which aims to improve the business climate in the Country namely : structural reforms, promoting entrepreneurship,…

Read More

Join The Discussion

Search

June 2020

  • M
  • T
  • W
  • T
  • F
  • S
  • S
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30

July 2020

  • M
  • T
  • W
  • T
  • F
  • S
  • S
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
0 Guests
0 Children
Pets
Area
Price

Compare listings

Compare