[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-111169-en":3,"doc-seo-111169-105":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},111169,962075006959,"Anda","https://ap-avatar.wpscdn.com/avatar/e0002397efbe92a78e?_k=1776741047341049297",8,"Research & Report","Cameroon - Joint Bank-Fund Debt Sustainability Analysis - High Risk of Debt Distress - Mitigation Measures","Cameroon faces a high risk of external and overall debt distress, with key DSA indicators broadly stable versus the February 2023 report. Higher contingent liabilities and rising interest rates weaken debt sustainability, while higher energy prices, a stronger exchange rate, and extending and augmenting the current program provide partial support. Debt carrying capacity remains weak, despite external debt stock indicators below thresholds, and external debt service indicators stay above thresholds but are improving through active debt management. Downside risks include geopolitical escalation and tighter global financing, requiring fiscal consolidation, portfolio and debt-service monitoring, export promotion, and stronger oversight of SOEs and PPP contingent liabilities.","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, and the extension and augmentation of the current program provide positive effects. 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 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.  \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 and putting pressure on the Cameroonian economy.  \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.  \nProlonged 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 spillovers to Cameroon, as well as more frequent climate disasters such as flooding. A realization of contingent liabilities, such as StateOwned 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 SOEsand 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), includes debt of the central government, expenditure floats and arrears, guarantees, debt of","cbCailOpq1LVObYU","https://ap.wps.com/l/cbCailOpq1LVObYU","pdf",762705,1,25,"English","en",105,"# Risk assessment\n## External debt distress risk (High)\n## Overall risk of debt distress (High)\n## Granularity in the risk rating (Sustainable)\n## Application of judgment (No)\n# Drivers and outlook\n## Negative effects on DSA indicators\n## Positive effects on DSA indicators\n## Debt carrying capacity and indicators\n## Downside risks\n# Mitigation and policy recommendations\n## Fiscal consolidation and revenue mobilization\n## Debt service monitoring and portfolio management\n## Export promotion and investment inflows\n## Strengthening SOEs and PPP risk management\n# Debt coverage and methodology notes\n## Coverage perimeter for public and external debt\n## Treatment of local government debt\n## Treatment of SOE debt as contingent liabilities","[{\"question\":\"What is the joint assessment of Cameroon’s debt distress risk?\",\"answer\":\"Cameroon is assessed as being at high risk of both external debt distress and overall debt distress. The granularity rating is described as sustainable, and judgment application is noted as no.\"},{\"question\":\"Which factors have negatively and positively affected the DSA indicators compared with the February 2023 report?\",\"answer\":\"Larger contingent liabilities and rising interest rates negatively affect the indicators. Higher energy prices, a stronger exchange rate, and extending/augmenting the current program have positive effects.\"},{\"question\":\"What is the main recommendation set to mitigate debt sustainability risks?\",\"answer\":\"The report calls for continued fiscal consolidation (including reducing fuel subsidies and boosting revenue), close monitoring of debt service with stronger debt portfolio management, export promotion to improve export-related indicators, and tighter management of SOEs and PPP projects to reduce contingent liability risks.\"}]",1784488925,63,{"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":86,"head_meta":88,"extra_data":90,"updated_unix":27},"cameroon-joint-bank-fund-debt-sustainability-analysis-high-risk-of-debt-distress-mitigation-measures","",{"@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-high-risk-of-debt-distress-mitigation-measures/111169/",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},"What is the joint assessment of Cameroon’s debt distress risk?","Question",{"text":75,"@type":76},"Cameroon is assessed as being at high risk of both external debt distress and overall debt distress. The granularity rating is described as sustainable, and judgment application is noted as no.","Answer",{"name":78,"@type":73,"acceptedAnswer":79},"Which factors have negatively and positively affected the DSA indicators compared with the February 2023 report?",{"text":80,"@type":76},"Larger contingent liabilities and rising interest rates negatively affect the indicators. Higher energy prices, a stronger exchange rate, and extending/augmenting the current program have positive effects.",{"name":82,"@type":73,"acceptedAnswer":83},"What is the main recommendation set to mitigate debt sustainability risks?",{"text":84,"@type":76},"The report calls for continued fiscal consolidation (including reducing fuel subsidies and boosting revenue), close monitoring of debt service with stronger debt portfolio management, export promotion to improve export-related indicators, and tighter management of SOEs and PPP projects to reduce contingent liability risks.","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"]