Core Insights - Cameroon is heavily relying on short-term government bonds (BTA) to manage its cash flow needs, with over 63% of government bonds issued in the BEAC market from June 2024 to June 2025 being BTA [1] - The trend of issuing BTAs is prevalent across the CEMAC region, with a total of 5.1278 trillion Central African francs raised, of which 3.1924 trillion francs (over 60%) were from BTA [2] - The interest rates on BTA issued by Cameroon have increased by 11.6% year-on-year, prompting the government to seek alternative financing sources outside the domestic capital market due to rising borrowing costs [2] Summary by Sections Government Bond Issuance - From June 2024 to June 2025, Cameroon issued over 63% of its government bonds as BTA, indicating a reliance on short-term financing to address immediate cash flow challenges [1] - During the first quarter of 2025, 60% of the funds raised by the Ministry of Finance were used to repay old loans, highlighting the need for continuous refinancing [1] CEMAC Region Trends - The issuance of BTA is not unique to Cameroon but is a common practice in the CEMAC region, where governments regularly issue short-term securities for daily treasury management [2] - The total amount raised in the BEAC market during the specified period was 5.1278 trillion Central African francs, with BTA accounting for a significant portion [2] Borrowing Costs and Financial Strategy - Cameroon has seen a notable increase in the interest rates for BTA, which rose by 11.6% year-on-year, raising concerns about the sustainability of its borrowing strategy [2] - The government is considering reducing potential refinancing risks associated with tight domestic market capacity, indicating a shift in financial strategy [2]