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Cameroon: A bank loan guarantee facility for the benefit of public and private companies

27/07/2021
Categories: Companies

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The Cameroonian state will guarantee up to 80% of the loans granted to companies in the English-speaking regions. To deal with the economic consequences of the security and health crises. This bank loan guarantee facility has been set up for the benefit of public and private companies.

 

The guarantee of domestic bank loans for the benefit of public and private companies impacted by the security crisis and the coronavirus pandemic, provided for by the 2021 finance law reserves pride of place to companies located in the crisis regions of the North-West and South-West. In addition, priority will be given to companies operating in the sectors selected by the National Development Strategy (SND30). These include energy; financial services; agribusiness; digital; forest-wood, textile-clothing-leather, mining-metallurgy-steel, hydrocarbons-petrochemical-refining, chemical-pharmaceuticals; constructions; services. In addition, 70% of the total amount (i.e. CFAF 140 billion) will be reserved for private companies and 30% (i.e. CFAF 60 billion) for those of the public. The guarantee will cover part of the loan: a maximum of 50% for large companies and 70% for small and medium-sized enterprises (SMEs). Thus, for the 200 billion FCFA that the government will guarantee to banks for companies impacted by the security crisis and the coronavirus pandemic, the State commits to 80% of the amount of loans contracted by companies operating in the North-West and South-West regions. This, compared to 50% for large companies and 70% for small and medium-sized enterprises operating in other regions.

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