[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-110417-en":3,"doc-seo-110417-105":29,"detail-sidebar-cat-0-en-105":90},{"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},110417,4398048950312,"Violet","https://ap-avatar.wpscdn.com/avatar/400002538284de19e3c?_k=1778320343897328908",8,"Research & Report","Cameroon: Joint Bank-Fund Debt Sustainability Analysis - Key Findings and Policy Considerations","The Cameroon joint World Bank-IMF Debt Sustainability Analysis (DSA) assesses the risk of external and overall public debt distress as high. Despite improvements versus the previous DSA—driven by faster pandemic recovery, improved fiscal balance, and stronger exports—multiple debt stock and service indicators remain above their thresholds under the baseline scenario. The analysis highlights major downside risks, including the war in Ukraine, higher food and fuel prices, rising subsidy costs, tighter financial conditions, and delays in SONARA debt restructuring, requiring careful use of increased oil revenues and reforms to sustain debt.","Public Disclosure Authorized  \nPub lic Disc losure Authorized  \nApproved by:  \nMarcello Estevão and Abebe Adugna (IDA), Vitaliy Kramarenko and Geremia Palomba (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 judgement | No |\n\nCameroon’s overall debt sustainability indicators have improved compared to the previous DSA, due to a faster recovery from the pandemic, improved fiscal balance, and stronger exports driven by higher oil and non-oil commodities prices. Nevertheless, Cameroon is still at high risk of external and overall public debt distress as its two external debt indicators and one public debt indicator continue to breach their respective thresholds and benchmark under the baseline scenario.1  \nGiven that Cameroon’s external debt stock indicators continue to lie below the thresholds, and its external debt service indicators have improved supported by the authorities’ active debt management, and the authorities remain committed to fiscal consolidation efforts, staff considers there is a high likelihood that Cameroon will continue to meet its current and future financial obligations and assess its debt as sustainable.  \nHowever, downside risks remain significant. The ongoing war in Ukraine could set back the global recovery and prolong supply disruptions, casting additional pressures on the Cameroonian economy. Rising food and fuel prices could intensify socioeconomic tensions, while rising subsidy costs could derail Cameroon’s fiscal consolidation efforts and/or crowd out necessary investments critical for economic development. Tightening global financial conditions could increase borrowing costs, and delayed restructuring of SONARA’s debt would further weigh on Cameroon’s debt sustainability. Continued vulnerability to the COVID-19 pandemic, and potential resurgence of regional security conflicts are adding to the challenges.  \nGiven increased downside risks, Cameroon will need to judiciously use its increased oil revenue to ensure its debt sustainability. Reducing the fuel subsidies by gradually increasing fuel pump prices while protecting the most vulnerable would be a critical step. In the meantime, continued efforts are warranted to limit reliance on non-concessional borrowing, strengthen management of SOEs, and accelerate reforms to boost exports and output.  \n1. Debt coverage has remained unchanged since the previous DSA (Text Table 1) . Public debt coverage includes debt of the central government, expenditure floats and arrears, guarantees, debt of a public oil company SONARA and external arrears of other state-owned enterprises (SOEs) .2 The DSA does not cover local government debt as local governments are not allowed to borrow from financial markets and most of their debt is on domestic suppliers including SOEs. Other elements in the general government such as social security funds or extra budgetary funds are not covered due to lack of data. External debt is mainly defined based on currency but is adjusted for residency where data is available.3  \n\n|  |  |  |  |\n| --- | --- | --- | --- |\n|  |  | Subsectors of the public sector | Check box |\n|  |  |  |  |\n|  | 1\u003Cbr>2\u003Cbr>3\u003Cbr>4\u003Cbr>5\u003Cbr>6\u003Cbr>7\u003Cbr>8 | Central government\u003Cbr>State and local government\u003Cbr>Other elements in the general government\u003Cbr>o/w: Social security fund\u003Cbr>o/w: Extra budgetary funds (EBFs)\u003Cbr>Guarantees (to other entities in the public and private sector, including to SOEs)\u003Cbr>Central bank (borrowed on behalf of the government)\u003Cbr>Non-guaranteed SOE debt | X\u003Cbr>X\u003Cbr>X\u003Cbr>X |\n|  |  |  |  |\n\n2. There is some scope to broaden the debt perimeter. In recent years the authorities have made significant progress in improving the comprehensiveness of debt ","cbCaiftNdQesRBpQ","https://ap.wps.com/l/cbCaiftNdQesRBpQ","pdf",925314,1,22,"English","en",105,"# Debt distress risk assessment\n## Baseline results and indicator breaches\n## Likelihood of meeting obligations under management\n# Downside risks and scenario pressures\n## Ukraine shock and global recovery\n## Food and fuel prices; subsidy cost risks\n## Borrowing costs and SONARA debt restructuring delays\n# Policy guidance and implementation priorities\n## Use of oil revenues and subsidy reform\n## Limits on non-concessional borrowing\n## SOE management and export-boosting reforms\n# Debt perimeter, coverage scope, and data limitations\n## Broadening the debt perimeter for SOEs\n## Treatment of local government debt and other elements\n## Contingent liabilities and stress test assumptions","[{\"question\":\"What is the overall assessed risk of debt distress for Cameroon?\",\"answer\":\"The analysis rates both the risk of external debt distress and the overall risk of debt distress as high, even though indicators improved compared with the previous DSA.\"},{\"question\":\"Why does the DSA still conclude the debt risk remains high under the baseline scenario?\",\"answer\":\"Key external and public debt indicators continue to breach their respective thresholds and benchmark levels under the baseline scenario, despite improvements in recovery, fiscal balance, and exports.\"},{\"question\":\"What major downside risks could further worsen Cameroon’s debt sustainability?\",\"answer\":\"Downside risks include the war in Ukraine affecting global recovery and supply disruptions, higher food and fuel prices increasing socioeconomic pressures, rising subsidy costs undermining fiscal consolidation, tighter global financial conditions raising borrowing costs, and delays in SONARA’s debt restructuring.\"}]",1784485333,55,{"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":85,"head_meta":87,"extra_data":89,"updated_unix":27},"cameroon-joint-bank-fund-debt-sustainability-analysis-key-findings-and-policy-considerations","",{"@graph":35,"@context":84},[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-key-findings-and-policy-considerations/110417/",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],{"name":71,"@type":72,"acceptedAnswer":73},"What is the overall assessed risk of debt distress for Cameroon?","Question",{"text":74,"@type":75},"The analysis rates both the risk of external debt distress and the overall risk of debt distress as high, even though indicators improved compared with the previous DSA.","Answer",{"name":77,"@type":72,"acceptedAnswer":78},"Why does the DSA still conclude the debt risk remains high under the baseline scenario?",{"text":79,"@type":75},"Key external and public debt indicators continue to breach their respective thresholds and benchmark levels under the baseline scenario, despite improvements in recovery, fiscal balance, and exports.",{"name":81,"@type":72,"acceptedAnswer":82},"What major downside risks could further worsen Cameroon’s debt sustainability?",{"text":83,"@type":75},"Downside risks include the war in Ukraine affecting global recovery and supply disruptions, higher food and fuel prices increasing socioeconomic pressures, rising subsidy costs undermining fiscal consolidation, tighter global financial conditions raising borrowing costs, and delays in SONARA’s debt restructuring.","https://schema.org",{"og:url":51,"og:type":86,"og:title":13,"og:site_name":58,"og:description":14},"article",{"robots":88,"canonical":51},"index,follow",{"doc_id":7,"site_id":24},{"code":4,"msg":5,"data":91},[92,96,100,104,109,114,119,122,127,130,134],{"id":20,"doc_module":4,"doc_module_name":45,"category_name":93,"show_sort_weight":94,"slug":95},"Story & 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