Yaounde: Reports from the Cameroons indicates that President Paul Biya has authorized his Minister of Economy, Louis Paul Motazé, to sign on behalf of the government a loan agreement of FCfa 7.3 billion with the Deutsche Bank. The loan is meant to finance the development of the Public Lake in Yaounde as a touristic side.
The government claims it will lead to the creation of about 2,000 jobs.
It should be recalled that this project has been announced months ago but fell short to proceed because of lack of funds. The funds allocated from the Deutsche Bank will kick start the project and help to purify the lake which has been largely abandoned. We are told street lighting will be installed around the lake with leisure spots, shops, restaurants, and a luxurious hotel.
Recalled that as announced by the Finance Minister, Cameroun public debts already stood at 4754 billion as of today, skyrocketing from 38 billion in 2014. IMF and other financial experts have raised the alarm of such debts because these projects most often engaged by the government are not revenue generating.
However, it should be noted that as of 2015, the London subsidiary of Deutsche Bank had already granted a loan of FCfa 21 billion to the State of Cameroon, to carry out this same project, in which the Spanish bank, Caixa Bank, has been committed since 2013. It beats our imagination to understand why the government is asking for another loan for a similar project.
God is still saying something.