Cameroon paid CFA29.5 billion in interest and fees on public debt in June 2026. These financing costs accounted for 9% of the CFA327 billion used to service debt during the month, excluding arrears and redemptions of fungible Treasury bills, known as BTAs.

Of the total paid in June, CFA297.5 billion, or 91%, went toward principal repayments, which reduce the amount of debt outstanding. The figures come from the Autonomous Sinking Fund’s (CAA) public debt report as of the end of June 2026, in the version dated July 27.

Interest and Fees Near CFA150 Billion in Six Months

Between January and June 2026, Cameroon spent CFA1.06 trillion servicing central government debt. Of that amount, CFA909.4 billion, or 85.8%, went toward principal repayments. Interest and fees accounted for the remaining CFA149.9 billion, equivalent to 14.2% of first-half payments.

The CFA29.5 billion paid in June represented 19.7% of all interest and fee payments made during the first half. It was also above the monthly average of nearly CFA25 billion recorded over the period.

External debt service totaled CFA62.9 billion in June, including CFA54.9 billion in principal and CFA8.1 billion in interest and fees, based on rounded figures. It reached CFA444.5 billion in the first half. The CAA said all external payments due by the end of June were made within contractual deadlines, with no arrears recorded.

Domestic debt, excluding arrears, accounted for most of the month’s payments. Domestic debt service totaled CFA264.1 billion in June and CFA614.8 billion over the first half. Government securities, excluding BTAs, represented 76.4% of domestic payments made between January and June.

June Interest Bill Equals Nearly 60% of Unstructured Debt

The interest and fees paid in June were equivalent to nearly 60% of the central government’s unstructured debt stock. That stock was estimated at CFA49.4 billion at the end of June 2026, down from about CFA51 billion at the beginning of the year.

The comparison illustrates the scale of the government’s interest burden, but it involves two different measures: a one-month flow and a debt stock measured at a specific date. Interest payments are also contractual obligations and cannot automatically be redirected toward settling other government liabilities.

The CFA327 billion in debt service reported for June does not cover all domestic obligations. The CAA excludes arrears, which stood at CFA703.5 billion at the end of June, pending final reconciliation of Treasury payment data. Bills unpaid for more than three months totaled CFA588.4 billion, or 83.6% of that amount.

Arrears are government expenditures that have completed the authorization process but remain unpaid. Their exclusion means the reported debt-service figure does not capture the government’s full stock of unpaid obligations or any subsequent payments made to clear them.

BTA Redemptions Also Excluded

The CAA also excludes redemptions of fungible Treasury bills. These short-term securities are issued at a discount: the Treasury receives less than their face value but repays the full amount at maturity. The interest is therefore effectively paid upfront through the discount at issuance rather than through periodic coupon payments.

The distinction between principal and interest is critical when assessing the budgetary burden of public debt. Principal repayments reduce the amount outstanding, while interest and fees represent borrowing costs without reducing the principal owed.

That burden is expected to increase in the coming years. The 2027-2029 Economic and Budget Programming Document projects debt interest payments of CFA552.4 billion in 2026, rising to CFA605.3 billion in 2027 and CFA707.8 billion in 2029.

The pressure on public finances therefore stems not only from the size of the debt stock, but also from the growing share of government resources required to cover interest and fees. As these costs rise, they could leave less room for other budget priorities.

Source: Business in Cameroon