Cameroon Prime Minister Yang Philemon might have already discussed new measures with the entire cabinet to cut the budget deficit, in an effort to convince lenders and investors, the country can deal with a debt crisis without falling into a political trouble and social unrest and even restructuring.
There is no guarantee that the country can cope with a sudden social unrest as the cost of Cameroon borrowing soared to a new highs.
Following ratings agency Standard and Poor`s decision to put Cameroon on a B and stable B, on a stable credit watch, economists are not yet anxious over political divisions in the country after a recent disorganized and disunited street`s demonstrations against austerity and the risen of the food prices as well.
While it is true that the economy will almost certainly start to grow again in the coming months, there will still be major headwinds with the outcome of the next presidential election.
But according to the Prime Minister office, the debt restructuring is not under discussion and the government is working according to instructions received by the Head of State, President Paul Biya.
The International Monetary Fund and the World Bank together have already approved the actual government fiscal plan and the 2011 budget.
There is a CFA100 billion internal debt that the government needs to pay back without negotiations. The opposition has no alternative plan for that as it has been reduced to a single minded minority in the Parliament and the government can just do whatever its wants without a solid opposition. The Prime Minister office believes that the gouvernment economic policy is right and ant suggestion otherwise is incorrect
Consumers and businesses continue ahead of the election to pay off debt and borrow less, figures from the Cameroon Bankers` Association show that there are CFA billion available in Banks and the government is doing nothing to encourage Banks to lent more to consumers and the demand remains weak.
Following ratings agency Standard and Poor`s decision to put Cameroon on a B and stable B, on a stable credit watch, economists are not yet anxious over political divisions in the country after a recent disorganized and disunited street`s demonstrations against austerity and the risen of the food prices as well.
While it is true that the economy will almost certainly start to grow again in the coming months, there will still be major headwinds with the outcome of the next presidential election.
But according to the Prime Minister office, the debt restructuring is not under discussion and the government is working according to instructions received by the Head of State, President Paul Biya.
The International Monetary Fund and the World Bank together have already approved the actual government fiscal plan and the 2011 budget.
There is a CFA100 billion internal debt that the government needs to pay back without negotiations. The opposition has no alternative plan for that as it has been reduced to a single minded minority in the Parliament and the government can just do whatever its wants without a solid opposition. The Prime Minister office believes that the gouvernment economic policy is right and ant suggestion otherwise is incorrect
Consumers and businesses continue ahead of the election to pay off debt and borrow less, figures from the Cameroon Bankers` Association show that there are CFA billion available in Banks and the government is doing nothing to encourage Banks to lent more to consumers and the demand remains weak.
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