The International Bank for Reconstruction and Development (IBRD), a non-concessional World Bank Group (WB) window, will disburse CFAF 113 billion to the State of Cameroon, a decree signed on 17 April 2017 by President Biya, who empowered the Minister of the Economy, Louis Paul Motazé (photo), to contract this loan on behalf of the Cameroonian State.
The loan was approved by the WB Board of Governors in October 2016. The funds that will be made available by the IBRD will be used to finance the transport sector, in which the government and its partners are conducting several projects, The rehabilitation and construction of national and transnational roads, the rehabilitation of the railway and the reinforcement of equipment, as well as the improvement of the port infrastructure of the country.
As a reminder, in October 2013, during the general assemblies of the IMF and the World Bank in Washington, the Cameroonian state expressed its wish to be able to benefit from the financing of the IBRD. Following a request from the Cameroonian authorities, a World Bank mission headed by Véronique Kessler, the main economist at the World Bank, visited Cameroon in November 2013, in order to count on a possible eligibility for the country at the IBRD window. An eligibility in April 2014, announced the government of Cameroon in an official statement.
IBRD is the second window of financing for the World Bank group, which is opening up to the Cameroonian state after the IDA (International Development Association) window. The significant difference between these two windows is that IDA credits are granted at concessional rates (generally below 1%), while IBRD credits are non-concessional, but are also repayable over the long term (25-38 years with deferrals ranging from 5 to 10 years).