200 billion guaranteed loans for companies

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Louis Paul Motazé, the Minister of Finance has just made public a ministerial decree. In this document which bears his signature, the member of the government makes official the guarantee agreement in the amount of 200 billion FCFA for domestic bank loans for the benefit of public and private companies, signed on July 22, 2021, with the Association association of credit institutions in Cameroon (Apeccam) and the National Association of Microfinance Institutions in Cameroon (Anencam). Concretely, through this line of guarantee provided for in the 2021 finance law, the State provides its guarantee for loans requested by private or public companies impacted by the coronavirus pandemic. According to the aforementioned decree, 70% of the total amount of this guarantee will be reserved for private companies and 30% for public establishments and companies. “The limit rate of coverage of the guarantee is capped at thirty percent (30%) of the sums due on the due date of the claim for large companies and seventy percent (70%) for SMEs. This ceiling can be adjusted by the State to sixty percent (60%) for large companies and to eighty percent (80%) for SMEs operating in economically devastated areas (North-West), South-West and Extreme. -North). Lending institutions can ask companies for other sureties on the part of the loan not covered by the State guarantee”, can we read in this document.

Who can benefit ?

Obtaining loans from banking establishments under the State guarantee is conditional on the observance of a certain number of criteria set out in the order of the Ministry of Finance. First of all, the bidding entities must be under Cameroonian law, with majority Cameroonian capital and established on the national territory. They must not be subject to collective proceedings (safeguard, receivership and liquidation) and must operate in priority sectors set by the National Development Strategy 2020-2030 (SND 30). With regard to private companies, these include sectors of activity such as; agro-pastoral and fisheries production (with an emphasis on corn, rice, fish and generally products that substitute for imported goods such as soya), agro-industry, the energy industry (notably energy renewables), textiles-clothing-leather; crafts; metallurgy-steel industry; chemicals and pharmaceuticals (with an emphasis on the production of fertilizers, packaging, cosmetics and pharmaceutical products). e-learning, etc.); the hotel industry; tourism and recreation. For Public Establishments and public enterprises, all branches of activity are eligible with the exception of entities undergoing restructuring or audit.


To hope to benefit from loans guaranteed by the State, potential bidders must send loan requests to banking establishments, which will then carry out a meticulous examination of said loan requests in accordance with the usual conditions of banks. But also check whether the latter meet the conditions for granting credit and eligibility. At the end of this procedure, they will give a pre-approval. The files thus validated will be transmitted, for opinion, to the National Committee of the Public Debt. The Minister of Finance then grants the State guarantee after reasoned opinion of the said Committee.

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