Local Banks Increase Economy Financing

By Godlove BAINKONG, Cameroon Tribune, 14-01-2014

Internal loans went up by 15 per cent, making a total of FCFA 1,809.9 billion in 2013.  

Local banks in Cameroon are increasingly working with government to finance the economy so as to attain set objectives in the country’s growth vision. For four years running, the Cotton Development Corporation, SODECOTON, has moved away from the hitherto cumbersome dependence on foreign banks to finance its production.
Last Friday, a consortium of five banks, led by Commercial Bank Cameroon (CBC) loaned out FCFA 35.5 billion to finance SODECOTON’s 2013/2014 cotton season.
The loan was the fourth operation of local banks for SODECOTON’s production. In 2011, four banks loaned out FCFA 6.5 billion, moved the amount to FCFA 10 billion in 2012 and FCFA 15 billion in 2013.
According to a press statement that sanctioned the national monetary committee session on November 1, 2013, internal loans (financing the economy by local banks) has been on a steady increase. Internal loans, the statement notes, witnessed a 15 per cent increase between 2012 and 2013 moving from FCFA 1,574.6 in August 2012 to FCFA 1,809.9 same period 2013. External financing also grew but not at the rate of internal financing. It moved to FCFA 1,518.02 billion by August 2013 witnessing a 6.9 per cent increase compared to the same period the previous year.>>>