The government of Japan has cancelled Cameroon’s debt worth FCFA 455 million. The debt service suspension falls within the framework of the G20. An agreement to this effect was signed by governments of both countries will assist Cameroon to address the health and socioeconomic shocks faced due to the COVID-19 pandemic.
The spread of the virus, experts say leaves Cameroon with no option but to contain soaring spending needs, declining revenues and insufficient revenue to borrow from to fill the gap.
Mitigating the impact of the global health crisis has remained a major challenge for most developing economies including Cameroon. This has caused difficulties which threatens the health and lives of the locals as well as the sharp reduction in economic activities which is a major threat to livelihoods.
This leaves the government with no option but to contain soaring spending needs, declining revenues and insufficient revenue to borrow from to fill the gap. This makes government’s ability to meet existing debts commitments very difficult.
It is on this that Japan, an official bilateral partner is stepping in to provide direct liquidity support to enable Cameroon abate the difficulties imposed by the health crisis and others.
The suspension will therefore bring immediate substantial emergency liquidity support to Cameroon’s strategy to prevent COVID-19 from spreading further.
It will also complement other mechanisms to support health and other economic activities in the country. Japan and Cameroon have signed six loan agreements amounting worth 105 billion and the money has been turned into mainly infrastructural and health projects.
By Doh Bertrand Nua
No comments:
Post a Comment