The floating debt in Cameroun has surged to nearly 1.8 billion USD by the end of the first quarter of 2026, underscoring a deepening structural imbalance between the State Treasury’s commitments and its actual payment capacity. This financial backlog encompasses all invoices settled or pending beyond regulatory deadlines, primarily owed to domestic suppliers, service providers, and creditors. In Yaoundé, the revelation has reignited debates over the efficiency of budget execution and the government’s fiscal maneuvering room amid tightening external financing conditions.

Floating debt: the government’s go-to budgetary adjustment tool

While floating debt is not a new phenomenon in Cameroun, its current scale signals a worrying escalation. At 1.8 billion USD, it now represents a substantial share of annual public expenditures, excluding debt servicing and salaries. The State is deliberately postponing payments to preserve its cash flow, effectively shifting the liquidity burden onto local private enterprises. This strategy, commonly observed in the CEMAC region, amounts to an indirect form of financing from domestic suppliers.

The repercussions on creditor businesses, often small and medium-sized enterprises (SMEs), are immediate and cascading. Late payments to subcontractors, difficulties meeting loan obligations, and payroll strains are just a few of the ripple effects. Cameroonian banks, exposed through credit portfolios to State suppliers, face an uptick in non-performing loans. The Bank of Central African States (BEAC) and the Central African Banking Commission are closely monitoring this growing interdependence between public finances and banking stability.

A stark warning for international partners

The disclosure of this floating debt figure coincides with ongoing negotiations between Yaoundé and the International Monetary Fund (IMF) for the continuation of its financial assistance program. It also follows repeated attempts to tap regional markets through public bond issuances on the BEAC platform. For multilateral lenders, the floating debt is a critical indicator, alongside official public debt levels. Its accumulation reflects systemic weaknesses in the expenditure chain—from commitment to disbursement—and fuels concerns over fiscal governance.

Previous fiscal years have seen debt clearance initiatives, yet their outcomes have been inconsistent. Far from shrinking, the residual stock of arrears tends to rebuild quarter after quarter. Both the World Bank and the IMF have long advocated for structural reforms, including systematic audits of arrears, stricter controls on off-budget commitments, and upgrades to the integrated public finance management system.

Real economy hit hard by delayed public payments

The consequences of floating debt extend beyond macroeconomic stability, severely disrupting public procurement. Companies, wary of payment delays, factor in a risk premium when submitting bids, driving up the cost of public contracts. Some firms opt out of tenders altogether, reducing competition and eroding service quality. Rather than stimulating the domestic economy, public spending has become a drag on productivity.

The construction sector, a major creditor to the State due to infrastructure projects, bears the brunt of this crisis. Roadworks stall, equipment delivery slows, and disputes pile up in administrative courts—adding hidden costs to the nominal arrears. Healthcare and education providers are also affected, with critical supply chains disrupted by unpaid invoices.

Cameroun’s government has pledged to bring arrears under control, aligning them with regional and global commitments. However, the 2026 economic outlook—marked by sluggish growth and underperforming tax revenues—complicates progress. Without fundamental reforms to streamline the expenditure chain, floating debt threatens to remain a persistent indicator of fiscal fragility in Central Africa’s largest economy.