Economy: Cameroon affirmed at 'B/B', outlook stable

Originally published on African Business Review

Leading provider of financial market intelligence, Standard & Poor's, said that it has affirmed its 'B/B' long- and short-term sovereign credit ratings on the Republic of Cameroon

The Republic of Cameroon has moderate debt, but high infrastructure needs, according to Standard & Poor's Ratings Services.

Standard & Poor's Credit Analyst, Véronique Paillat-Chayriguès, said: “The ratings on Cameroon balance high political risks, moderately low development standards, and limited fiscal flexibility with moderate debt levels and membership in the CEMAC zone.”

The firm said that the global financial crisis had affected Cameroon primarily through exports.

It highlighted the oil and forestry industries as the worst hit, with agriculture and services performing reasonably well.

It also forecast that real GDP will grow by an average of 3 percent annually until 2012, as external demand gradually recovers and investments pick up, partly offsetting the foreseeable decline in oil production.

Standard & Poor's said: “Fiscal and external ratios should remain under pressure in 2010 and 2011. On the fiscal side, an expansionary 2010 budget, including salary increases, a large infrastructure investment program, and the clearing of domestic arrears to the oil refinery SONARA will cause the deficit to widen to 4.1 percent of GDP in 2010 and 1.2 percent of GDP in 2011. In the longer term, fiscal performance will depend on the ability to raise non-oil revenues, as oil output contracts.

“On the external side, the trade balance fell into deficit in 2009 for the first time in two decades, and the current account deficit deepened to 5.1 percent of GDP. The deficit should remain close to 4 percent of GDP in 2010, before gradually improving as oil prices and demand for forestry products recover.”

STABLE OUTLOOK

The firm’s stable outlook reflects its expectation that debt will remain on a sustainable path, despite expected larger investment levels, as Paillat-Chayriguès outlined: “The stable outlook reflects our expectation that the authorities will implement economic reforms and accelerate investments to raise the economy's growth potential while preserving public finances.”

Standard & Poor's said that the ratings could be raised or come under pressure depending on the reforms progress.

Comments

[Va Boy]

ha ha ha !

[njimaforboy]

Accountability is the glue that holds the best laid plans together. He is right, because Biya Paul is accountable to nobody, no one outside the government knows the GDP.

The same argument holds true that Biya Paul is not a sitting President. Presidential previleges do not apply to Biya Paul because he never won an elction. Killiing him doesn not mean Presidential assasination because he is not a sitting President. He is a mobster out to terrorize free citizens.

The Nkwen chief represents Nkwen, Northern, Southern and all over Cameroon, we have Chiefs that represent their people. Their right to chieftaincy is inherited. Killing any of them can qualify as an assasination.

Any Law that Protects any sitting President, who came to power through winning an elction does not protect Paul Biya. Any true blooded Cameroonian should attempt to eliminate the butcher of etoudi, because he is becoming suicidal and won't mine taking Cameroon to the grave with him.

This son fo a bitch is now toying with the idea of having Frank Biya take over from his father.

Guys , a fish starts rotting in the head. How can 20 million people be so blind to this truth. Biya Paul is like a dead fish that starts rotting in the head. Any true son or daughter of Cameroon should be willing to end our missery burying the dead fish before it starts smelling.

[Va Boy]

Alcohol, my friend. The answer to your question is alcohol, the poison that makes people stupid and careless about important things. That crap is everywhere and there is no age limit to accessing it. Pregnant women use it to poison the baby in the womb.

[princenyenty]

njimaforboy,
You have a point.I back you up.I only wish God's wrath sweeps Biya before he transfers powers over to the next of kin in his Kingdom of Cameroon. God is the only solution bro.Cameroonians are far unlike Nigerians.

[JOANNA31Orr]

Different people in all countries receive the personal loans from different banks, just because it is simple.