Finance Minister, Essimi Menye, yesterday unveiled the new strategy to revamp the economy. The disbursement by the International Monetary Fund (IMF) of 144.1 million dollars, about CFA 70 billion, under the rapid access component of the Exogenous Shocks Facility (ESF) to assist Cameroon attenuate the impact of the global crisis featured prominently in the press
conference given by the Minister of Finance, Essimi Menye yesterday. Whereas the loan was considered a better option to acquire finances for the economy, the decision did not quite receive approval from some local tabloids. Questions from some journalists at yesterday??s press conference incidentally translated this worry. Why should Cameroon go back to the IMF when she has enough reserves in the Central Bank? Why did government solicit the IMF without a clear project with which to use the money for? Why did the Minister of Finance go back there whereas he had promised doing the contrary after the completion of the last economy programme? Clarification To all these questions and worries, Finance Minister explained that it was a better evil. Two main reasons came out of his explanations as to why Cameroon was compelled to seek the assistance of the IMF: it is a low interest loan of 0.5 per cent refundable in five years; payment begins five years from the day of disbursement and the money can flexibly be used. Cameroon??s reserves at the Bank of Central African States (BEAC) stand at CFA 1,600 billion, Essimi Menye said, stating that Cameroon has the interest to protect them. Bank reserves, he said, are a powerful instrument of guarantee on which donor organisations base their argument before giving out loans. CFA 418 billion is what the country has as drawing rights but this can only be done under short term arrangement and at an annual interest rate of 4.25 per cent refundable after six months. ??If the money is not paid, we start accumulating arrears??, he said, stating that Cameroon has had to pay almost CFA 100 billion in BEAC as a result of such withdrawals. Against this backdrop, Essimi Menye explained, it was necessary to solicit the IMF. Stop Gap Measures The Ministers of Finance who was accompanied by the new Minister of Communication, Issa Tchiroma Bakary, equally streamlined some of the measures his department has taken to contain or reduce the shocks of the crisis. Pending the completion of the new independent economic programme expected to be out soon, some stop gap measures are being taken in favour of the affected sectors. Though government has decried the provision of subsidies in the agriculture sector, there are moves to support cotton farmers. ??Government is considering supporting the importation of fertilizer for cotton farmers??, Essimi Menye said. According to the Minister of Finance, it would be logical to boost the activities of textile industries such as CICAM so they can produce more and use more cotton. The State will benefit more from locally processed cotton than from that exported as raw material, he said. The government, he stated, will be ready to work with actors in other affected sectors such as timber and rubber. The faith of AMITY Bank may have been sealed, but the perspectives are high with the taking over of the bank by Banque Atlantique Cameroun. In order to save customers from embarrassment, and to ensure AMITY is not declared insolvent, government decided to take over 30 per cent of the bank??s debt. The Minister was worried about allegations of him having swindled CFA nine billion from the bank, questioning how much the bank had as capital for him to have swindled such a colossal amount.
LUKONG Pius NYUYLIME, Cameroon Tribune
