Yaounde: BEAC to allocate 1.2 billion dollars to bailout banks and treasuries in the CEMAC zone

The monetary policy committee of the central banks of the CEMAC zone has announced measures taken at a special session which held on Wednesday in Yaounde at the BEAC headquarters.  The Bank of Central African States (BEAC) will allocate between 500 and 600 billion CFA francs (between 1 and 1.2 billion dollars) to bail out banks and treasuries within the economic union. This information was made public by Lucas Abaga Nchama, the governor of the institution.

The leaders of the central bank in the sub region indicated that by this gesture, BEAC intends to bring its response to the particularly difficult economic situation with a projected growth of 1.6% in 2016, which was affected by falling prices of commodities  such as oil for some countries, and the security crisis facing others like the Central African Republic. 

CEMAC monetary experts added that if other indicators are shaken by the 3% inflation more or less under control, BEAC  will come in with a 50% coefficient of reserve requirements in force in CEMAC  Congo, CAR, Gabon, Cameroon, Equatorial Guinea and Chad. "We lowered the reserve requirement ratio to give more liquidity to the banking system," precised the Governor of BEAC. Strengthening bank liquidity Search banks should give more "comfort for the banks, which will have a much more dynamic management", argued the leaders of the BEAC.