International Monetary Fund (IMF) has approved a $660m loan facility to Cameroon.
The loan facility, which has a short three-year tenure, was granted to support the country’s economic reforms.
Since the oil crisis began, oil producing countries within Central Africa’s CEMAC currency union have struggled to meet their economic obligations.
Cameroon has struggled even more as it has had to channel a significant part of its dwindling revenues into combating the growing threat of terrorism from West African neighbours Nigeria as Islamic sect Boko Haram continues to wreak havoc.
“Having initially shown resilience owing to its greater diversification, the Cameroonian economy is now facing decelerating growth, declining fiscal and external buffers, and rapidly rising public debt,” IMF Deputy Managing Director Mitsuhiro Furusawa said in a statement released to Reuters.
The IMF has earlier agreed to lend $642 million to Gabon, Cameroon’s neighbour. Gabon is facing similar economic challenges as Cameroon.