[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-111442-en":3,"doc-seo-111442-105":29,"detail-sidebar-cat-0-en-105":91},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":13,"seo_description":14,"update_tm":27,"read_time":28},111442,5909877438554,"Maeve","https://ap-avatar.wpscdn.com/avatar/5600025385ad2bf12a7?_k=1778553567797529272",8,"Research & Report","Cameroon - Joint Bank-Fund Debt Sustainability Analysis - Debt distress risk assessment","Cameroon faces a high risk of external debt distress and a high overall risk of debt distress, with debt sustainability indicators broadly stable versus the February 2023 DSA while remaining constrained by weak debt-carrying capacity. Larger contingent liabilities and higher interest rates reduce key indicators, but higher energy prices, a stronger exchange rate, and program extensions alongside new financing under the RSF provide supporting effects. External debt stock indicators stay below thresholds, while external debt service indicators remain above but trend downward due to active debt management. Staff concludes debt is sustainable given fiscal consolidation and continued debt portfolio management.","Public Disclosure  \nPub lic Disc losure Authorized  \nApproved by:  \nAbebe Adugna and Manuela Francisco (IDA) and Vitaliy Kramarenko and Bergljot Bjornson Barkbu (IMF)  \nPrepared by the staff of the International Development Association (IDA) and the International Monetary Fund (IMF) .  \n\n| CAMEROON: JOINT BANK-FUND DEBT SUSTAINABILITY ANALYSIS |  |\n| --- | --- |\n| Risk of external debt distress | High |\n| Overall risk of debt distress | High |\n| Granularity in the risk rating | Sustainable |\n| Application of judgment | No |\n\nCameroon remains at high risk of debt distress while its overall debt sustainability indicators have been broadly stable compared to the previous DSA report published in February 2023. Larger contingent liabilities and rising interest rates negatively affect the DSA indicators, while higher energy prices, stronger exchange rate, the extension and augmentation of the current program in the fifth review, and a new financing arrangement under the RSF substituting less concessional financing provide positive effects. The debt carrying capacity continues tobe weak as suggested by the latest score of the Composite Index (CI) and the bond spread is above the benchmark value.1 On the other hand, while Cameroon’s external debt stock indicators continue to lie below the threshold, its external debt service indicators remain above the threshold but have improved supported by the authorities’ active debt management. Both external debt service indicators are on a downward trend. Taking all these factors into consideration, staff maintains the assessment that Cameroon’s debt is sustainable given the authorities’ commitment to program objectives, including fiscal consolidation efforts and active debt management.  \n1 The Cameroon Composite Indicator index, calculated based on the October 2023 World Economic Outlook and the 2022 Country Policy and Institutional Assessment, is at 2.61, indicating that Cameroon’s debt-carrying capacity remains weak.  \nKey downside risks to this assessment include the continuing Russia’s invasion of Ukraine and an escalation of geopolitical tensions which could set back the global recovery putting pressure on the Cameroonian economy. Prolonged tight global financial conditions could lead to the deterioration of financing environment and higher borrowing costs. The high volatility of global energy prices could lead to uncertainty on both exports and fiscal revenue. On the domestic front, the overall macroeconomic situation could be affected by the rising social tensions amidst both higher inflation and upcoming presidential election, a deterioration in regional stability with spilloversto Cameroon, as well as more frequent climate disasters such as flooding. A realization of contingent liabilities, such as State-Owned Enterprises (SOEs) and Public-Private Partnership (PPP) projects, could weigh further on DSA baseline indicators.  \nTo mitigate the risks, Cameroon should firmly push forward its agenda to ensure its debt sustainability, while aligning macroeconomic policies with social objectives. First, keeping public debt dynamics on a sustainable path requires continued efforts in fiscal consolidation, including a further reduction in fuel subsidies and increased revenue mobilization. Second, the authorities should closely monitor their debt service and strengthen the management of their debt portfolio to minimize interest rate risks. Third, vulnerable export-related debt indicators point to the need for export promotion. Reform momentum to improve the domestic business and investment environment should be further accelerated, boosting exports and inviting more foreign direct investment inflows. Lastly, management of SOEs and PPP projects should be strengthened to reduce risks related to contingent liabilities.  \n1. Debt coverage has remained unchanged since the previous DSA (Text Table 1) . Public debt coverage, as agreed with the authorities in the Technical Memorandum of Understanding (TMU","cbCainki575krd5U","https://ap.wps.com/l/cbCainki575krd5U","pdf",685368,1,26,"English","en",105,"# Risk of Debt Distress Assessment\n## Overall Risk and External Debt Distress\n## Drivers of DSA Indicators\n## Downside Risks\n## Mitigation Measures and Policy Recommendations\n## Coverage and Methodological Notes","[{\"question\":\"How does the DSA assess Cameroon’s risk of debt distress?\",\"answer\":\"Cameroon is assessed as having a high risk of external debt distress and a high overall risk of debt distress.\"},{\"question\":\"What factors worsen or improve Cameroon’s debt sustainability indicators?\",\"answer\":\"Worsening factors include larger contingent liabilities and rising interest rates. Improving factors include higher energy prices, a stronger exchange rate, program extension and augmentation in the fifth review, and new RSF financing substituting less concessional financing.\"},{\"question\":\"Is Cameroon’s debt considered sustainable, and why?\",\"answer\":\"Yes. Staff maintains that debt is sustainable given authorities’ commitment to program objectives, including fiscal consolidation and active debt management of the debt portfolio.\"}]",1784490153,66,{"code":4,"msg":30,"data":31},"ok",{"site_id":24,"language":23,"slug":32,"title":13,"keywords":33,"description":14,"schema_data":34,"social_meta":86,"head_meta":88,"extra_data":90,"updated_unix":27},"cameroon-joint-bank-fund-debt-sustainability-analysis-debt-distress-risk-assessment","",{"@graph":35,"@context":85},[36,53,68],{"@type":37,"itemListElement":38},"BreadcrumbList",[39,43,47,50],{"item":40,"name":41,"@type":42,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":44,"name":45,"@type":42,"position":46},"https://docshare.wps.com/document/","Document",2,{"item":48,"name":12,"@type":42,"position":49},"https://docshare.wps.com/document/research-report/",3,{"item":51,"name":13,"@type":42,"position":52},"https://docshare.wps.com/document/cameroon-joint-bank-fund-debt-sustainability-analysis-debt-distress-risk-assessment/111442/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":62,"encodingFormat":60,"isAccessibleForFree":63,"interactionStatistic":64},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-20","2026-07-19",true,{"@type":65,"interactionType":66,"userInteractionCount":20},"InteractionCounter",{"@type":67},"ViewAction",{"@type":69,"mainEntity":70},"FAQPage",[71,77,81],{"name":72,"@type":73,"acceptedAnswer":74},"How does the DSA assess Cameroon’s risk of debt distress?","Question",{"text":75,"@type":76},"Cameroon is assessed as having a high risk of external debt distress and a high overall risk of debt distress.","Answer",{"name":78,"@type":73,"acceptedAnswer":79},"What factors worsen or improve Cameroon’s debt sustainability indicators?",{"text":80,"@type":76},"Worsening factors include larger contingent liabilities and rising interest rates. Improving factors include higher energy prices, a stronger exchange rate, program extension and augmentation in the fifth review, and new RSF financing substituting less concessional financing.",{"name":82,"@type":73,"acceptedAnswer":83},"Is Cameroon’s debt considered sustainable, and why?",{"text":84,"@type":76},"Yes. Staff maintains that debt is sustainable given authorities’ commitment to program objectives, including fiscal consolidation and active debt management of the debt portfolio.","https://schema.org",{"og:url":51,"og:type":87,"og:title":13,"og:site_name":58,"og:description":14},"article",{"robots":89,"canonical":51},"index,follow",{"doc_id":7,"site_id":24},{"code":4,"msg":5,"data":92},[93,97,101,105,110,115,120,123,128,131,135],{"id":20,"doc_module":4,"doc_module_name":45,"category_name":94,"show_sort_weight":95,"slug":96},"Story & Novel",90,"story-novel",{"id":46,"doc_module":4,"doc_module_name":45,"category_name":98,"show_sort_weight":99,"slug":100},"Literature",80,"literature",{"id":52,"doc_module":4,"doc_module_name":45,"category_name":102,"show_sort_weight":103,"slug":104},"Exam",70,"exam",{"id":106,"doc_module":4,"doc_module_name":45,"category_name":107,"show_sort_weight":108,"slug":109},5,"Comic",60,"comic",{"id":111,"doc_module":4,"doc_module_name":45,"category_name":112,"show_sort_weight":113,"slug":114},6,"Technology",50,"technology",{"id":116,"doc_module":4,"doc_module_name":45,"category_name":117,"show_sort_weight":118,"slug":119},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":45,"category_name":12,"show_sort_weight":121,"slug":122},30,"research-report",{"id":124,"doc_module":4,"doc_module_name":45,"category_name":125,"show_sort_weight":126,"slug":127},9,"Religion & Spirituality",20,"religion-spirituality",{"id":126,"doc_module":4,"doc_module_name":45,"category_name":129,"show_sort_weight":126,"slug":130},"World Cup","world-cup",{"id":132,"doc_module":4,"doc_module_name":45,"category_name":133,"show_sort_weight":132,"slug":134},10,"Lifestyle","lifestyle",{"id":136,"doc_module":4,"doc_module_name":45,"category_name":137,"show_sort_weight":106,"slug":138},19,"General","general"]