The reduction is attributed to seasonal payment and the progressive cleansing of the debt.

Cameroon’s debt servicing dropped in the third quarter of 2011 by over 50 per cent, the 2011 third quarter debt situation published by Cameroon Autonomous Sinking Fund (CAA) shows. The effective debt servicing for the third quarter stood at FCFA 23.7 billion, “representing a reduction of close to 50 per cent” vis-à-avis the previous years. According to the publication, the drop is due to the seasonal payment and the progressive cleansing of the national debt.

The servicing of public debt, the publication states, is composed of 54.6 per cent of external debt, representing about FCFA 13 billion and 45.4 per cent national debt, representing FCFA 10.8 billion. Out of the servicing, 66 per cent, representing about FCFA 15.7 billion was effective reimbursement while 33 per cent, about FCFA 8 billion was charges.

Conversely, the 30-page publication shows that as at September 30, 2011 (third quarter), the State had incurred a debt of FCFA 1,736 billion as against FCFA 1,708 billion in the second quarter (June 30, 2011) and FCFA 1,510 billion a year before. This increase is attributed to the fall in the face value of the CFA Franc vis-à-vis the dollar as well as the FCFA 200 billion mandatory government bonds of 2010. The public debt is made up of 66.7 per cent external debt, about FCFA 1,158 billion as well as 33.3 per cent internal debt, representing FCFA 578 billion. In the second quarter, external debt stood at 65.7 per cent, about FCFA 1,121 billion against 34.4 per cent internal debt, representing FCFA 587 billion. A year before that, external public debt stood at 70.4 per cent, about FCFA 1,064 billion against 29.6 per cent internal debt, representing FCFA 446 billion.

Projections for the fourth quarter were that FCFA 80 billion was to come from external disbursement and FCFA 80 billion from within the country. Part of the internal disbursement was to come through the issuance of treasury bonds. At the end of the December 31, 2011, the bonds had effectively fetched the FCFA 50 billion expected of it.

For 2012, CAA forecasts that FCFA 175 billion will go to pay off public short and medium-term debt while FCFA 73 billion will be used to reimburse loans on Value Added Tax.  The quarterly publication of the country’s debt situation by CAA falls within its mission which consists in managing the public loans of the State, public and semi-public entities and its associates, providing the government with the information needed to formulate the country’s debt policy, seeking, studying and negotiating foreign and domestic financing for the State in conjunction with the ministries concerned as well as participating in money and financial markets.