Pres. Biya Summons CEMAC Extra-Ordinary Summit to Discuss Economic Challenges


CEMAC Heads of States including IMF Director and French Finance Minister

CEMAC Heads of States:

 

An extra ordinary summit of Heads of States of the Economic and Monetary Community of Central African States (CEMAC) summoned by President Paul Biya has taken place in Yaoundé, Cameroon on Friday 23rd of December 2016. The summit was called among others; to address the economic down turn due to the fall in the price of petroleum and the economic impact faced by Central African countries due to security challenges. The Heads of States of the CEMAC region also discussed questions about the devaluation of the Franc CFA, which was unanimously rejected.

According to H.E Paul Biya: “This summit was an opportunity for us to look at the stakes and come up with solutions to the difficulties we face”. Also in attendance were IMF Managing Director Christine Lagarde and French Finance Minister Michel Sapin who were there to give suggestions on the way forward for the Central Africa sub region facing significant negative consequences following the fall in petroleum prices.

In prelude to the extraordinary Summit, CEMAC Ministers had met in Yaoundé one day before on the 22nd December 2016 to address the difficulties faced by the economies of the sub-region and how the various countries have been tackling it. The Ministers meeting was in preparation of the Heads of States summit the next day. They met to agree on a common strategy to deal with the problem that the summit has been convened for and to draft proposals to be forwarded to the CEMAC Heads of States for examination during the extra Ordinary summit.

After the summit of the Heads of States on Friday 23, December 2016, 21 resolutions of were decided as follows:

Resolution 1: No Re-adjustment of the current currency parity.

Resolution 2: Adoption of measures to reverse the negative trends in the economy of the Sub-Region.

Resolution 3: Implementation of infrastructure to promote sustainable development for the benefit of the population.

Resolution 4: Attachment to community solidarity in the face of current and future economic and security shocks.

Resolution 5: Freeze limits on the statutory advances of the BEAC to the level set in 2014.

Resolution 6: Strengthening the supervision of the banking system and optimal use of monetary instruments.

Resolution 7: Engage BEAC in the adoption of measures to promote migration to finance by capital markets.

Resolution 8: Strictly pursue budget adjustments needed to balance public finances.

Resolution 9: Conduct targeted budgetary policies while preserving social gains.

Resolution 10: Gradually restore the balance of  the state budget to below 3% in less than 5 years.

Resolution 11: Privilege concessional financing and promote public-private partnerships.

Resolution 12: Welcomes the sound advice and technical assistance of development partners.

Resolution 13: Open and conclude bilateral negotiations with the IMF to structure an exit from the crisis.

Resolution 14: Solicitation each country for Strengthening more flexible international cooperation.

Resolution 15: Recourse to multilateral partners for the strengthening of the balance of payments and the continuation of projects.

Resolution 16: Finalization of the free movement of people and goods and implementation of security projects.

Resolution 17: Promotion of wealth-generating activity, mobilization of internal tax revenues in the CEMAC zone.

Resolution 18: Strengthening international tax cooperation, Combating fraud, tax evasion and optimization.

Resolution 19: Diversification of the economy by making it less vulnerable and competitive in the face of trade liberalization.

Resolution 20: Follow-up measures taken at the Extraordinary Summit by the Program for Economic and Financial Reforms.

Resolution 21: Regular ministerial-level meetings for monitoring and evaluation of remedial measures.

 

 

 

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