Central Bank To Inject $500M To Cushion COVID-19 Impacts On Central African Nations

The Bank of Central African States  (BEAC) says it would assist  economic operators in the member-countries of the Central African Economic and Monetary Commission (CEMAC) by injecting  250 billion FCFA (about US$500 million) into the monetary market.

This operation which would be launched today (Thursday), December 10, would last until December 17, 2020.

The fund is intended to assist economic agents in search of financing to best cushion  the negative effects on their businesses of the COVID-19 pandemic.

According to the BEAC, the money to be injected would be effected at the currently applicable interest rate of 3.25 per cent in conformity with the dispositions of the CEMAC.

Financial institutions interested in the monetary offers were expected to have submitted their offers by Wednesday and each bank was supposed to make a maximum of five submissions.

In view of the difficult situation through which the economies of the sub-region are passing through, which has been aggravated by the COVID-19 pandemic, this operation of injecting liquidity into the money market could result in a huge success that would go a long way to confirm a tendency that has been observed recently.

It would also stimulate investment and lead to increased consumption of goods and services.

The operation covers the six CEMAC countries namely, Cameroon, Chad, the Central African Republic, Equatorial Guinea, Gabon and Congo Brazzaville.

The assets that would be accepted as guarantee for the financial operations by BEAC would be in conformity with Decision number 04/CPM/2013 of October 31, 2013 outlining conditions for the granting of financial support to banking institutions in the CEMAC zone.

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Chief Bisong Etahoben

Chief Bisong Etahoben is a Cameroonian investigative journalist and traditional ruler. He writes for international media and has participated in several transnational investigations. Etahoben won the first-ever Cameroon Investigative Journalist Award in 1992. He serves as a member of a number of international investigative journalism professional bodies including the Forum for African Investigative Reporters (FAIR). He is HumAngle's Francophone and Central Africa editor.

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