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

27/07/2021
Categories: Companies

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The Cameroonian state will guarantee up to 80% of loans granted to businesses in 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 public and private companies impacted by the security crisis and the coronavirus pandemic, provided for by the 2021 Finance Act, reserves the lion's share for businesses located in the crisis regions of the North-West and South-West. Furthermore, priority will be given to enterprises operating in the sectors selected by the National Development Strategy (SND30). These include energy; financial services; agribusiness; digital technology; forest-wood, textile-confection-leather, mining-metallurgy-steel, hydrocarbons-petrochemical-refining, chemical-pharmaceutical industries; constructions; services. In addition, 70% of the total amount (140 billion FCFA) will be reserved for private companies and 30% (60 billion FCFA) for public companies. The guarantee will cover part of the loan: up to 50% for large companies and 70% for small and medium-sized enterprises (SMEs). Thus, for the 200 billion FCFA that the government will guarantee from banks for businesses impacted by the security crisis and the coronavirus pandemic, the State is committed to 80% of the amount of loans taken out by companies operating in the North-West and South-West regions. This is compared to 50% for large companies and 70% for small and medium-sized businesses operating in other regions

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