Economy

Cameroun receives a Big punch on the face, as Moody further downgrade its outlook

 

 

Cameroun receives a Big punch on the face, as Moody further downgrade its outlook

In April 2017, when I announced that Moody and Fitch had downgraded Cameroun’s credit rating to B2 & B respectively, it didn’t quite sink well to many, as both agencies still reluctantly maintained a positive outlook for Cameroun. It’s just over a year, and the story is different and one creating panic in Yaounde.The bad news reaching Yaounde is that Moody has further downgraded Cameroun’s credit rating (in other words it credit worthiness) and changed it’s outlook from Stable to Negative.

What this means is that the credit rating agency no longer has confidence in Camerouns financial future and it’s ability to continue serving its debts. (In other words, the risk of Cameroun defaulting on its debts is getting higher by day) and even more worrying for Yaounde is Moody’s reason for the negative outlooking rating. According to Moody, the persistent political instability (in other words, the Anglophone conflict) in the country is a major worrying factor. There is hightened uncertainty.

 

Cameroon Rating

Let me explain this further to those with limited knowledge on what all these means.

Credit ratings are like red flags to potential borrowers. They give an idea to borrowers on your ability to pay back your debt, implying the lower your credit rating is, the less likely people (institutions) will be willing to borrow money to you.
Those who are willing to take the risk and borrow you some money, will do so at a very high interest rate, so as to mitigate for the risk incase you default. When I made the announcment in April 2017, Cameroun’s public debt (a.k.a national debt) was US $18 636 130 339 which was FCFA 11,213,637,499,532.60.

Today, just a year later, the debt has increased by more than 4billion US Dollars and stands at US $22 722 696 701 (FCFA13,058,900,000,000).
What this means is that, each and every “Cameroonian” owes an average of US $901 (FCFA 517,814) i.e (Five hundred and seventeen thousands, eight hundred and fourteen france to creditors). That’s an increase of almost US $200 debt for every Cameroonian within just one year.

I am breaking this down to paint a realistic picture, so that everyone should see where Cameroun is heading to and why they can not sustain this senseless war for any much longer, except the entire country is remortgaged at a very high price (a rate worse than what it is already being mortgaged to France and China at)I will leave you at this point to make the calculations at what the cost will be by the time this second war enters its 3rd or 4th year, assuming Cameroun will still be on its feet.

Note: All figures used in this article are real and from credible financial sources.
© E. Acha
12 August 2018

Otto Ama
11 Comments

11 Comments

  1. Malis

    August 12, 2018 at 9:24 PM

    If the IG and all these nonsense groups don’t give the orders to our Amba Boys on ground zero to start slaughtering LRC citizens in Ambazonia, then they should consider themselves void.

    Those fake ass boy posting videos on social media are supposed to be killing all those LRC citizens in Ambazonia. What the hell are we doing with only roads blocks? That is good, but not enough.

    Please start killing LRC citizens and posting it on the social media, that is what we want to see. What kind of a people are we, they have given us the right to kill their citizens by their actions, we have all the proof. No court can hold us accountable, it is self-defense.

    They kill our children, parents, mothers, babies, women, … everyday.

    So, this is an order to our Amba boys on ground zero. Kill with no mercy, no pity, no regrets any LRC citizens in Ambazonia. That is your job from now on. They kill our people, damn it, slaughter their people too.

    • Luap Ayib

      August 12, 2018 at 9:44 PM

      @ Malis, you are an idiot. We are not terrorists like Biya’s soldiers who go around indiscriminately killing innocent civilians. If we start randomly killing francophones, we will lose all international sympathy and this will provide an excuse for foreign countries like France, etc., to intervene directly against us and even to start arresting our brothers in the diaspora who support the struggle. It would be a big strategic mistake to follow your foolish advice and I hope that nobody pays attention to it. Perhaps you are an LRC agent trying to destabilize our fight for independence.

      • Malis

        August 12, 2018 at 10:30 PM

        Yes, I’m the Devil, I’m an idiot, a fool.

        But I’m smart enough to realize that this world we live in today treats people who are evil with much respect. Even if I’m not evil, I must show people that can be evil if they ever dare cross the line.

        Even pigs, animals have more value than us Ambazonians. We are been slaughtered and you still function in your right mind, something is wrong with you.

        Any psychologist will tell you that the number one attribute of a sane person is that persons ability to recognize life-threatening danger and fight against it. That is exactly what we are doing. If you see life-threatening danger and you are not able to recognize it, you are insane.

  2. Malis

    August 12, 2018 at 9:58 PM

    SECOND ORDER:

    If you are not an Amba Boy, look for anything that you can kill with, there is no limit, Acid, poison, fire, knives, petrol, poison bow and arrow, …
    and revenge the death out your loved ones by killing any LRC citizens living around you.

    YOU MUST KILL THEM.

    We must prove to them that there is nothing they can do, that we will not match and even do better than them.

    This is a most, NO discussion, NO debate, KILL THEM AS MUCH AS YOU CAN.

    The UN, ICC, … will first have to explain to us where they were and what they did when we Ambazonians were been massacred by LRC savage BIR’s.

    To hell with these organization.

    Ambazonians must stand up and revenge their loved ones. It’s time for the civil war.

  3. MoG

    August 12, 2018 at 10:09 PM

    We the Amba have already a clean image in the eyes of the international community that we are responsible in our struggle and fight. We are fighting LRC’s military not their innocent citizens. To kill their citizens will just completely discredit our legitimate struggle. To start a new phase of targeting their citizens converts our struggle into a xenophobic struggle. Any such suggestions to target Francophones is just so terrible. This kind of advice can only come from a LRC agent planted in our midst to sell this struggle to the advantage of LRC. No one should listen to this suggestion by Malis. It is unwise and disastrous!

  4. Malis

    August 12, 2018 at 10:12 PM

    THIRD ORDER:

    Look for where LRC citizens live and Burn them alive in their houses too, destroy their neighbourhood.

    If LRC can do that to us Ambazonians and the world does not care, the world should not also care if we do the same thing to LRC citizens.

    No more nonsense, words for words, actions for actions. Equal and opposite forces neutralizes each other. This is the only way our.

  5. MoG

    August 12, 2018 at 10:17 PM

    MALIS IS A DEVIL AND SO NO SHOULD LISTEN TO HIM. ONLY DEVILS LIKE HIM CAN LISTEN TO HIM!

  6. MOG

    August 12, 2018 at 10:30 PM

    MALIS is a blood-sucker who is thirsty for blood like his master Biya and his blood demonic society. Malis, we surrender you and your master to the Devil, your Supreme Master. No single Francophone will be killed by any Amba on Ambaland; I can assure you that. If any Francophone is killed, then your agents have killed him/her.

    • Malis

      August 12, 2018 at 10:35 PM

      You are right, I suck blood, I eat flesh, just like Biya.

      That is why you are scared of me and scared of him, Biya. That is why the world, the UN, France, CW, OAU, … loves him. I’m not going to eat you, you are Ambazonian, I will eat LRC citizens for breakfast, lunch and dinner.

  7. Dinga

    August 13, 2018 at 3:41 AM

    Hahaha this malis is an LRC citizen not Ambazonian. Believe me.

  8. George

    August 13, 2018 at 1:04 PM

    @Malis: You talk nonsense. Our struggle is not against Francophone Cameroonians. They suffer themself under the rule of that dictator. The enemy of Ambazonians is the state of LRC with its army and gendarms.

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