86bn French debt relief funds lying fallow at BEAC!

The funds accruing from debt relief granted Cameroon in 2006 by the French government, following the attainment of the HIPC completion point, are intended to finance development projects in the country

By Ojong Steven Ayuk in Yaounde

The funds already accruing from debt relief following Cameroons attainment of the completion point of the HIPC initiative are quite enormous and are destined for the financing of urgent development projects in the country.

But in spite of the market under-development of the country and the abject poverty to which the masses have been subjected over the past two decades, government still seems short of ideas as to what viable projects could consume the money and better the lives of Cameroonians.

And because of this, over 86 billion FCFA of the nearly 160 billion FCFA so far deposited in accounts at the Central Bank, BEAC, thanks to debt relief granted Cameroon by the French government following a contract signed between the two countries on 22 June 2006, is still waiting to be used, and this until the government presents viable projects.

So far the government has only been able to withdraw close to 80 billion FCFA to finance mostly
rehabilitation works in Yaounde and Douala, and a smaller part to pay salaries of contract teachers. In fact, over 11 billion FCFA (8 billion in 2007 and 3 billion in the first half of 2008) has been used for payment of contract teachers’ salaries.

Following the 2006 contract for debt relief with the French government, money intended for servicing of debts owed France is deposited in two accounts at BEAC. This money is ploughed back into the economy to finance development projects under the HIPC-C2D programme.
At a press briefing here on 15 April, the Director of the French Development Agency, Pascal Collange, said that by the end of the first part of the C2D programme that ends in 2011, Cameroon would have benefited some 352 billion FCFA from France.

Pascal Collange said Cameroon has so far respected deadlines for the servicing of her debts, to the tune of 70 billion FCFA a year.

He said through an agreement between the two governments, the civil society has been brought in to contribute in the follow-up of the execution of projects under the C2D programme. This to ensure adequate use of the funds and proper execution of projects.

According to Marc Bikoko, president of the syndicate of public servants (CSP), the role of the civil
society is to identify problems with the execution of the projects and ensure that corrective measures are taken.