The assessment is in line with the long-term debt rating granted to the country last April, keeping Cameroon in the speculative high-risk issuer category. The financial analysts' decision immediately targets a $200 million loan, equivalent to approximately 131 billion CFA francs, which the government is actively negotiating with a banking partner for a three-month term.

The treasury advance serves as a budgetary buffer to alleviate immediate liquidity tensions, while finalizing the formalities of a 15-year concessionary loan with a 5-year grace period. The long-term financing, negotiated with a multilateral lender, integrates the new environmental, social, and governance (ESG) framework adopted by the authorities in Yaoundé. The announcement of a negative outlook on a quarterly maturity emergency instrument automatically increases the interest rates required by the lender syndicates, which include an increased risk premium. The analysts justify their reservations by citing the persistence of structural weaknesses in national financial governance, including insecurity in certain regions and the irregular application of the rule of law.

The restoration of the country's financial reputation remains conditional on a comprehensive restructuring of public expenditure control mechanisms. Fitch Ratings recommends a tightening of budget commitment rules and more rigorous management of treasury flows to prevent any accumulation of external arrears, a required condition for restoring investor confidence. The agency does not anticipate any revaluation of the sovereign rating in the short term, although it projects a progressive debt reduction trajectory that would bring the public debt ratio to 40.2% of Gross Domestic Product (GDP) by 2027. Controlling the costs of emergency loans will be the main challenge for the state treasury in the coming quarters.


Nlend Flore

Tags: notation financière fitch ratings cameroun risque élevé dette publique financement économie investissements rating