CEMAC: suspension of adjustments to the eligibility conditions of guarantees for BEAC refinancing operations

The Bank of Central African States (BEAC) announced, in a press release published on July 2, 2021, the suspension of the readjustments of the conditions of eligibility of guarantees for its refinancing operations. The measure was adopted on June 24, 2020 as part of the fight against the effects of the Covid-19 pandemic.

The issuance institute also announced further “adjustments” to the stance of monetary policy implemented since March 2020 in support of the economy. This, after the meeting of the Monetary Policy Committee (MCP) held on June 28, 2021 by video conference under the chairmanship of Governor Abbas Mahamat Tolli.

This is, under a new measure, the reactivation of liquidity recoveries via long-maturity operations targeting credit institutions with excess liquidity and wishing to make investments with the BEAC. “These operations will be carried out at a fixed rate indexed to the TIAO”, specifies the sub-regional central bank.

“The measures maintained relate to the outstanding liquidity injections of CFAF 250 billion, to long-maturity liquidity injection operations (12 months maximum) in favor of banks in need of liquidity, and to interest rates. of the Central Bank, as mentioned above, ”she says.

In addition, the BEAC, which notes a “persistence of the Covid-19 pandemic in the CEMAC” has revised its growth forecasts for the region downwards, after the recession recorded in 2020 (-1.7%). It now expects a weaker economic recovery with a growth rate of 1.3% in 2021, against 1.6% announced last April.

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