Home » Economy and Finance
Cameroon: Government Signs FCFA 10 Billion Loan from BGFI to Revive SMEs
Category :- Economy and Finance Author :- N Gelmin S 
Posted on September 2, 2020, 10:01 am
(0 Rating)

Since the outbreak of the COVI-19 pandemic in Cameroon, the country has been receiving loans from banks as financial support to boost falling sectors of its economy.

BGFI

The government just signed another financial grant agreement of FCFA10 billion with the BGFI Bank in Cameroon to revive the Small and Medium Seize Enterprises in the country after the financial slump caused by the COVID-19 pandemic.

This information was made public yesterday September 1st, 2020 during an audience granted by the Minister of Finance Louis Paul Motaze to the General Manager of  BGFI Bank ( a financial institution in Cameroon) Abakal Mahamad.

“The coronavirus pandemic affected all of us to varying extents. It made us realize that we all depend on one another. We cannot, therefore, ignore the various requests from actors in our value chain,” said Abakal Mahamat, Managing Director of BGFI Cameroon.

The grant is said to be the outcome of a research carried out by Cameroon’s Employers’ Union, GICAM in which they found out that one of the sectors hard-hit by the effects of the COVID-19 pandemic in Cameroon is the SMEs with an over 80 percent loses uncured.

Abakal Mahamat, Managing Director of BGFI Cameroon

It is for this reason that the General Manager of BGFI signed an agreement with the Cameroonian government to support SMEs, setting a sum of FCFA10 billion as credit to boost economic recovery of the sector.

This revival will proceed under the technical supervision of Cameron’s Finance Ministry and will be closely followed up by the Minister of Finance.

“It is a very important and we want to take advantage of what the Bank has brought to the Cameroon Government. The crisis we are facing now is in the health sector but everybody can understand that now we are…in an economic and financial crisis… now we are going to see with our people here what can be done,” Minister Motaze said.

“The SMEs have particular problems and their problems should be addressed and the measures that have been taken in the beginning of the crisis aimed at helping overall sector of finance and economy but we have discovered that only the big enterprises have seen some help from those measures. Now, we are going to see for the SMEs what their conditions are,” he added.

The audience was therefore meant to discuss ways on how this sum will be put into effect for the sector. In the framework of that agreement, the SMEs to benefit from this boosting plan will be selected based on a set of criteria.

MINPMEESA

The criteria to be used to select beneficiaries of this credit have not been disclosed but BGFI indicates that they will be less stringent. “My teams will collaborate with the Ministry of Finance to elaborate conditions that will be less restrictive,” Abakal Mahamat assured.

He further explained that this support is not to revive the sector for profit making but that this it is needed to preserve jobs and production infrastructures for the sector and enhance economy recovery.

Welcoming this grant on behalf of the Cameroonian government, Minister Louis Paul Motaze expressed gratitude for the Bank. “We are glad BGFI is resolutely standing by our side during this struggle. The support provided by the bank is critical since it comes at the same time as the president of the republic’s instructions to elaborate a recovery plan,” the Minister said.

Minister of finance

Inaugurated about 9 years ago, the BGFI Bank has proven itself as a vital actor in the country’s banking sector by stepping in when necessary to offer assistance.

However, many are questioning the rate at which the country is accepting financial loans recently. They argue that the country has incurred a lot of debts that they might be able to refund in due time.

Rate this article   
Cameroonians in Kenyan Police Custody for Possessing Fake gold, Millions of dollars
Three Cameroonians are currently under Kenyan police custody....
Page Views: 164
Anglophone Crisis: “Help me, help me. Every day my people are being killed”
Reports on news of an Anglophone Cameroonian has gone viral ....
Page Views: 198
Cameroon: Biya’s Special Recruitment of 2000 PHD Holders Continues
In the second phase of the special recruitment of 2000 staff....
Page Views: 268
Cameroon: NCASP to be Finalize, Draft Decree Adopted by end-2021
Cameroon National Security Committee - NSC will among other ....
Page Views: 304
Shelter Afrique to Host 40th AGM, Annual Housing Symposium in Cameroon
Shelter Afrique, the pan-African housing development bank ha....
Page Views: 318
___________________ ___________________