CEMAC zone: recession could reach 6% according to BEAC

All the indicators are certainly not red. But most of the economic indicators in the six countries of the Economic and Monetary Community of Central Africa (CEMAC) are already found the Monetary Policy Committee (CPM) of the Bank of Central African States (BEAC) at the end of the second annual session on June 24, 2020 in Yaoundé.

Analyzing the situation in Central Africa, it emerges that in the short and medium terms, the CEMAC zone is affected by the health crisis and the fall in the prices of the main export products. "

"In the first half of 2020, the revival of productive activities was slowed down in the sub-region by the disruption of supply circuits for imported products as well as by the restrictive measures adopted by the various governments to contain the effects of the pandemic. Although it is premature for the moment to fully grasp the impact of COVID-19 on national economies, it is already anticipated during this first semester a drop in production as well as a det…

Debt moratorium on African countries: private banks demand guarantees

While controversy is over whether or not to cancel the debts of poor countries, especially those in Africa, the big private banks want more confidence to adhere to the one-year moratorium approved by the G20 countries. Through the Institute of International Finance (IIF), they have made known their conditions for freezing the private debt of these states. Taking into account the complex nature of the private debt of the poorest countries in the world which would benefit from a one-year moratorium, the Institute of International Finance (IIF), lobby grouping 450 of the world's largest banks, issues reserves.
Debt moratorium on African countries: private banks demand guarantees

While welcoming the willingness of international organizations to support the least developed states in this period of the covid-19 pandemic, the IIR, through the voice of its president, Timothy D. Adams, addressed to the presidents of the IMF, the World Bank and Paris Club, a correspondence in which he calls for caution.

According to the position of the institution reported by Rfi, the agreement of a year of moratorium on said debts will not be easy for private creditors. For good reason, says the president of the IIR, "the lending banks have obligations towards their customers, which they must respect".

In addition, "the private debts contracted by the States are many and varied", he specifies. Believing that there could be no simple solution, Timothy Adams advocates an intelligent and open dialogue between creditors and debtors.

To this is added a policy of transparency on the part of indebted countries, based on good faith and the respect of all creditors. Beyond that, he warns the countries that have borrowed on the financial markets.

According to him, these countries as a whole, must have in the idea that the moratorium is not without consequences on their future access to private financing. For the record, during this year 2020, the 76 poorest countries on the planet, including forty African countries, should repay a total of 32 billion dollars.

But, because of the macabre effects of the coronavirus, Paris obtained the moratorium on the level of bilateral and private creditors, that is to say a total of twenty billion dollars. China, one of Africa's biggest creditors, has accepted this principle.

The World Bank, to which these countries owe 12 billion claims, has also declared itself in favor of the moratorium on their debt. For the time being, the majority of the African states concerned remain divided between "legitimate over-indebtedness" and a complete cancellation of their debt.