[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-111344-en":3,"doc-seo-111344-105":29,"detail-sidebar-cat-0-en-105":94},{"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":4,"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},111344,4398048949847,"Eliana","https://ap-avatar.wpscdn.com/avatar/400002536579ef2da7f?_k=1778318612642679267",8,"Research & Report","Cameroon: Joint Bank-Fund Debt Sustainability Analysis - High Risk Assessment - Mitigation Measures","Cameroon faces a high risk of external and overall debt distress under the joint Bank-Fund debt sustainability analysis. Although some indicators improved or remained stable due to limited negative effects from recent debt management and still-strong nominal growth, debt carrying capacity stays weak, with bond spreads above benchmarks. External debt service pressures improve but remain key vulnerabilities, while the PV of public debt-to-GDP falls below its threshold for the first time, indicating easing overall distress risk.","Public Disclosure Authorized  \nApproved by:  \nManuela Francisco and Abebe Adugna (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) .  \nPub lic Disc losure Authorized  \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 compared to the previous DSA report published in February 2024. The small negative short-term impact of the recent debt management operation and still-high interest rates are more than compensated by higher nominal growth, resulting in somewhat improved or substantially unchanged debt sustainability indicators. The debt carrying capacity continues to be 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-to-export indicator remains above the threshold for all years and the external debt service-to-revenue indicator until 2030.  \nHowever, the external debt service indicators have improved, supported by the authorities’ active debt management, and are on a downward trend. The PV of public debt-to-GDP ratio fell below its threshold for the first time since the start of the current ECF-EFF program, suggesting declining risk of overall debt distress. 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.  \nOn key downside risks to this assessment, the overall macroeconomic situation could be affected by the rising social tensions amidst still-high inflation and upcoming presidential elections, a deterioration in regional stability with spillovers to Cameroon , and 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. External downside risks include an escalation of geoeconomic tensions, which could set back the  \n1 The Cameroon Composite Indicator index, calculated based on the October 2024 World Economic Outlook and the 2023 Country Policy and Institutional Assessment, is at 2 .60, indicating that Cameroon’s debt-carrying capacity remains weak.  \nglobal recovery putting pressure on the Cameroonian economy. Prolonged tight global financial conditions and underperformance of advanced economies could lead to the deterioration of the financing environment and lower export demand. The high volatility of global energy prices could lead to uncertainty on both exports and fiscal revenue.  \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 the elimination of 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 remains unchanged since the previous ","cbCaiqYfdt12pWAC","https://ap.wps.com/l/cbCaiqYfdt12pWAC","pdf",709992,1,25,"English","en",105,"# Key Debt Distress Assessment\n## External risk rating\n## Overall risk rating\n# Drivers of Sustainability Indicators\n## Growth and debt management impact\n## Debt carrying capacity and bond spreads\n## Debt service-to-export and debt service-to-revenue signals\n# Downside Risks and Contingent Liabilities\n## Macroeconomic and regional stability risks\n## Climate and contingent liabilities\n## External geoeconomic and financing risks\n# Policy Mitigation Priorities\n## Fiscal consolidation and revenue mobilization\n## Debt portfolio and interest rate risk monitoring\n## Export promotion and investment environment reforms\n## Strengthening SOE and PPP management","[{\"question\":\"What is Cameroon’s overall risk of debt distress in this analysis?\",\"answer\":\"The overall risk of debt distress is rated High, even though some indicators show improvement or remain unchanged versus the prior DSA.\"},{\"question\":\"Why does the PV of public debt-to-GDP ratio matter in the assessment?\",\"answer\":\"The PV of public debt-to-GDP ratio fell below its threshold for the first time since the current program began, signaling declining risk of overall debt distress.\"},{\"question\":\"What are the main downside risks that could worsen debt sustainability?\",\"answer\":\" Downside risks include rising social tensions, deteriorating regional stability, more frequent climate disasters, realization of contingent liabilities from SOEs and PPPs, and external pressures such as geoeconomic tensions and tighter global financial conditions.\"},{\"question\":\"What actions does the analysis recommend to mitigate debt sustainability risks?\",\"answer\":\"Recommendations include advancing fiscal consolidation (including removing fuel subsidies), actively monitoring debt service and strengthening debt portfolio management, promoting exports and accelerating business/investment reforms, and strengthening SOE and PPP management to reduce contingent-liability risks.\"}]",1784489705,63,{"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":89,"head_meta":91,"extra_data":93,"updated_unix":27},"cameroon-joint-bank-fund-debt-sustainability-analysis-high-risk-assessment-mitigation-measures","",{"@graph":35,"@context":88},[36,53,67],{"@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-high-risk-assessment-mitigation-measures/111344/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":61,"encodingFormat":60,"isAccessibleForFree":62,"interactionStatistic":63},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-19",true,{"@type":64,"interactionType":65,"userInteractionCount":4},"InteractionCounter",{"@type":66},"ViewAction",{"@type":68,"mainEntity":69},"FAQPage",[70,76,80,84],{"name":71,"@type":72,"acceptedAnswer":73},"What is Cameroon’s overall risk of debt distress in this analysis?","Question",{"text":74,"@type":75},"The overall risk of debt distress is rated High, even though some indicators show improvement or remain unchanged versus the prior DSA.","Answer",{"name":77,"@type":72,"acceptedAnswer":78},"Why does the PV of public debt-to-GDP ratio matter in the assessment?",{"text":79,"@type":75},"The PV of public debt-to-GDP ratio fell below its threshold for the first time since the current program began, signaling declining risk of overall debt distress.",{"name":81,"@type":72,"acceptedAnswer":82},"What are the main downside risks that could worsen debt sustainability?",{"text":83,"@type":75},"Downside risks include rising social tensions, deteriorating regional stability, more frequent climate disasters, realization of contingent liabilities from SOEs and PPPs, and external pressures such as geoeconomic tensions and tighter global financial conditions.",{"name":85,"@type":72,"acceptedAnswer":86},"What actions does the analysis recommend to mitigate debt sustainability risks?",{"text":87,"@type":75},"Recommendations include advancing fiscal consolidation (including removing fuel subsidies), actively monitoring debt service and strengthening debt portfolio management, promoting exports and accelerating business/investment reforms, and strengthening SOE and PPP management to reduce contingent-liability risks.","https://schema.org",{"og:url":51,"og:type":90,"og:title":13,"og:site_name":58,"og:description":14},"article",{"robots":92,"canonical":51},"index,follow",{"doc_id":7,"site_id":24},{"code":4,"msg":5,"data":95},[96,100,104,108,113,118,123,126,131,134,138],{"id":20,"doc_module":4,"doc_module_name":45,"category_name":97,"show_sort_weight":98,"slug":99},"Story & 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