[stop-imf] Cameroon to boost privatisation with IMF support

[robert weissman]

http://za.today.reuters.com/news/NewsArticle.aspx?type=topNews&storyID=2005-10-26T062822Z_01_ALL623336_RTRIDST_0_OZATP-ECONOMY-CAMEROON-PRIVATISATION-20051026.XML

Cameroon to boost privatisation with IMF support
Wed Oct 26, 2005 8:28 AM GMT

By Pascal Fletcher

DAKAR (Reuters) - Cameroon plans to privatise its state airline, water
utility and telecommunications company as part of an IMF-backed economic
reform programme aimed at obtaining debt relief next year, Economy and
Finance Minister Polycarpe Abah Abah said on Tuesday.

He said a government programme to privatise and restructure state
companies would be accelerated following approval by the International
Monetary Fund on Monday of a three-year $26.8 million loan facility for
the West African country.

Abah said the latest Poverty Reduction and Growth Facility for Cameroon
would help it complete economic reform goals to become eligible in the
first half of next year for debt relief offered under the IMF and World
Bank's Heavily Indebted Poor Countries (HIPC) Initiative.

"We have a portfolio of companies that are going to be privatised," the
minister told reporters in a telephone conference call from Yaounde.

The privatisation tender for Cameroon Airlines, the state flag carrier,
was due to be launched by January 31, 2006.

The privatisation process for CamTel, the state telecoms company, would
be started by end-June, 2006 and for the state water utility, Societe
Nationale Des Eaux, by July 31, 2006, Abah said.

He declined to give a value for the companies involved.

There were also plans to restructure other state companies as part of a
medium-term government programme aimed at boosting growth and reducing
poverty.

If Cameroon qualified for the multi-lateral HIPC debt cancellation
initiative next year, this would sharply reduce its net public external
debt burden from a projected 153 percent of exports at the end of 2005
to 54 percent at the end of 2006.

In approving the loan facility for Cameroon on Monday, the IMF said the
government's "prudent policies" had helped to achieve solid economic
growth, low inflation and a narrowing current account deficit.

"Cameroon's macroeconomic performance through 2004 was solid with real
growth registering about 4 percent and inflation remaining low," the
fund said in a statement.

But it also urged the government of President Paul Biya to complete an
unfinished reform agenda by improving governance, control of spending
and the business climate.

Abah said Biya had ordered the government to wage a "war without mercy"
against corruption, including rooting out dishonest or "phantom" civil
servants who received salaries and payments they were not entitled to.

He also hoped the latest IMF facility lasting to June 30 2008 would
allow Cameroon to gain access to more loans and cooperation from the
international community.

"Beyond the IMF support, Cameroon should be able to regain credibility
to benefit from greater assistance from other development partners," he
said.

Besides producing some oil -- about 89,000 barrels per day in 2004 --
Cameroon exports cocoa, coffee and cotton.