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Cameroon goes on borrowing rampage to fund sports infrastructure and loss making state-owned companies

Yaounde (National Times) – The Cameroonian government is set to raise FCFA 156 billion through the issuance of state bonds to prospective investors, according to Cameroon Radio and Television (CRTV).

The government aims to use the money to fund sports infrastructure for the upcoming African Nations Cup, which will be host in Cameroon in June 2019.

Cameroon’s Minister of Finance, Louis Paul Motaze also added that part of the funds will be used to fund state-owned enterprises such as PAMOL, SOWEDA, and SEMRY.

A state bond or sovereign bond is a bond issued by a national government, generally with a promise to pay periodic interest payments and to repay the face value on the maturity date.

Cameroon, once an Island of peace in the central African region, is currently overwhelmed by several conflicts in the North and Southwestern region. Funding these conflicts is hitting the state’s pocket as well as undermining economic activities across the country.

Mr Motaze has promised investors that the government will not default on the repayment of it interest of the bonds as well as the principal. This is the fifth time the government is issuing bonds, and the state has in the past met its payment obligations.

 

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