Cameroon : Joint Bank-Fund Debt Sustainability Analysis, 2018 Update
Cameroon’s risk of external debt distress remains high. Fiscal consolidation and the Fund-supported envisaged reforms, coupled with the increasing share of concessional new borrowing, would improve the debt profile over time. However, at present,...
| Main Authors: | , |
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/224271537348088801/Cameroon-Joint-Bank-Fund-Debt-Sustainability-Analysis-2018-Update http://hdl.handle.net/10986/30525 |
| Summary: | Cameroon’s risk of external debt
distress remains high. Fiscal consolidation and the
Fund-supported envisaged reforms, coupled with the
increasing share of concessional new borrowing, would
improve the debt profile over time. However, at present,
Cameroon’s external debt remains highly vulnerable to
exogenous shocks: the policy-dependent threshold for the
present value of debt to exports and debt service to exports
are breached in the baseline program scenario as well as
under standard stress tests. Mitigating risks to public debt
thus requires a number of policy actions including: (i) a
resolute and effective fiscal consolidation; (ii) a shift in
the composition of new borrowing towards concessional loans;
(iii) enhanced controls on externally-financed investment
projects at all levels of government; (iv) implementation of
policies to boost growth and non-oil exports; and (iv) a
strengthening of public debt management. |
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