Development bank for Central African States disburse 90 Billion FCFA to circumvent economic impact of Coronavirus

By Amos Fofung

CEMAC Leaders at a 2019 Summit in Yaounde ,Cameroon.Photo credit PRC.

The Development Bank of Central African States, BDEAC is finalizing plans to doll out cira 90 billion francs CFA to governments of the six member states of the Central African Economic and Monetary Community, CEMAC, to enable them cushion the negative economic impact caused by the coronavirus pandemic.

This was the major decision reached when Finance Ministers of CEMAC met in Brazzaville, the Congolese capital on March 29, to ponder on the economic slum looming within the sub region, nay the world, because of the economic slowdown caused by the coronavirus outbreak worldwide.

During what they categorized as an extraordinary meeting, Finance Ministers from Cameroon, Chad Republic, Gabon, Equatorial Guinea, Central African Republic and Congo Brazzaville took much time in analyzing the impact of this pandemic on the economic fabric of their nations and the sub region in general.

They noted that with the drastic fall in price of a barrel of oil and the drop in trade deals across the sub region, Africa and the world, there was a need for such a subsidy to enable CEMAC member states face the crisis situation.

In a press release issued by the Permanent Secretary of the CEMAC Economic and Financial Reform Programme, PREFCEMAC, the Bank of Central African States, BEAC will make this money available to the sub region’s development bank. PREFCEMAC specified that the money will be channeled to finance public projects relating to the fight against the COVID-19 pandemic and the strengthening of health systems within member states.

Before this decision emanated from the extraordinary meeting of CEMAC Finance Ministers, the sub regional development bank had already dished out 500 million francs CFA to each member state to enable governments take precautionary measures as the outbreak of the coronavirus pandemic was announced.

Development and Central Bank officials also announced that BEAC will double the weekly credits it normally gives to credit banks. This will rise from 250 billion francs CFA to 500 billion francs per week.

This is also in line with the statutes of the monetary policy committee which met a few days before the Finance Ministers’ met and deliberated by videoconference.

The sub region’s monetary officials also assured that all interest rates normally attributed to calls for tender will be lowered by 25 basis points, as well as the revised marginal loan facility rate by 100 points.

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