Having urged the nation not to panic with the Emergence 2035 economic plan, it appears the Yaoundé regime just did just that as the global dollar short squeeze forces the 34-year-old government of President Biya to beg the International Monetary Fund for 666.2 million dollars in emergency loans to help fund a deficit in a budget heavy on public spending amid collapsing oil revenues.
Biya and the CEMAC leaders had earlier ruled out a second devaluation of the FCFA. With global oil prices tumbling, banks and companies are already struggling with the consequences of a dive in Cameroon’s energy revenues that has hit the CFA currency and triggered flows of capital out of the country.
For 34 years, President Biya has faced criticism from the Cameroonian people including investors for failing to appoint a genuine cabinet or outline concrete policies. Amid confusion over who will succeed the 84 year old dictator, Cameroon Intelligence Report gathered that of the 666.2 million dollars, 177.3 will be disbursed immediately and the remainder will be released over a three-year period.
The loan aims to consolidate the budget which was voted by the National Assembly for the implementation of reforms to diversify the Cameroonian economy. Cameroon’s economy has been hit hard by the fall in oil prices and the insecurity in connection with the war against Boko Haram, the battle for the control of the gold and diamond reserves in the Central African Republic and the Southern Cameroons uprising all of which entails huge costs.
Our chief intelligence officer explained that the loan obtained by Cameroon was on the menu of exchanges between Mr. Biya and Christine Lagarde, the IMF boss during her visit to Cameroon in January 2016. The corrupt Francophone political elites have also argued that Cameroon has shown resilience in the face of falling oil prices.
By Soter Tarh Agbaw-Ebai
Cameroon Intelligence Report