Cameroon negotiating new IMF deal

APA-Yaoundé (Cameroon) Cameroon is in negotiation with the International Monetary Fund (IMF) for a new partnership agreement, the minister of Economy, Planning and Land Development (MINEPAT), Louis Paul Motaze has said.

Motaze made the announcement on the sidelines of the 6th International Trade Fair for Small and Medium Enterprises and a “Promote Partnership” forum being held in Yaounde.

Without giving further details of the talks, Motaze pointed out that the agreement does not seek to put in place austerity measures but will rather continue to boost wealth and growth, while tackling the downward trend of investment spending and promoting the private sector.

Cameroon resorting to the Bretton Woods financial institution is part of a common sub-regional approach announced at the end of an extraordinary summit of heads of state of the Central Africa region held on 23 December 2016 in Yaounde, in the presence of the IMF Managing Director, Christine Lagarde.

Cameroon negotiating new IMF deal

After lamenting the downturn in the sub-region’s economy, the heads of state decided to open and conclude short-term bilateral negotiations with the IMF in a bid to fix their countries’ ailing economies, find means of tackling economic uncertainties and create the conditions for the recovery of their economies.

Given the gloomy outlook of Cameroon’s economy, in October last year IMF recommended drastic measures aimed at restoring macroeconomic equilibrium and putting the country on the path of stronger growth.

Due to the exogenous shocks and the heavy cost of the war against the Islamist sect Boko Haram, IMF urgently calls for strict budgetary adjustment, strengthening social protection measures and structural reforms for the competitiveness and diversification of the economy.