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CEMAC: Bank Loans Hit CFA 11.7 Trillion End 2023.

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The Bank of Central African States has declared that loans given by banks in the Central African Economic and Monetary Community (CEMAC) ,rose to CFA 11.7 trillion end 2023.

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The Bank of Central African States declared that , commercial banks in the region practically scrambled for liquidity. In spite of the enormous amount of Cfa 250 billion that the Bank of Central African States has introduced into the economy. This procedure according to BEAC, came as banks continued to encounter intensive  cash flow requirements.The whole amount was rapidly immersed by commercial banks . Only just 7banks ,solicited a total of Cfa 423 billion leading to an overcapitalization rate  of approximately 170% . However,Beac restricted by financial resources could only provide Cfa 250billion at an average rate of 6.75% .This cash flow injection followed a failed attempt by BEAC to remove Cfa 50billion from banks through bond issuance.Earlier , BEAC has put inplace stricter Monetary policies: Reduce refinancing margins for banks and increasing liquidity withdrawal through bond issuance . Regardless of these restrictive measures, banks extending credit in the CEMAC region continued to grow.During the preceding months , inflationary pressures in the zone have also relaxed .This has initiated Beac to calmdown its policies , resuming liquidity injections in June 2024 . This Sum made accessible to banks has escalated from Cfa 50 billion to Cfa 250 .Yvon Sana Bangu , the governor of the Bank of Central African States, assures that meeting these liquidity need is anticipated to help the CEMAC region accomplished its projected growth rate of 3.6% in 2024 .                                                                                                                              



Christelle Koambi

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