The suspension of the Bank of Central African States’ (BEAC) special refinancing window is more than a technical decision. It reflects a deeper disagreement between the Central African Economic and Monetary Community’s (CEMAC) central bank and the International Monetary Fund (IMF) over the role monetary policy should play in financing the real economy.

Speaking in Yaoundé on June 29, 2026, after a meeting of the Monetary Policy Committee (MPC), BEAC Governor Yvon Sana Bangui said the April 2 decision to freeze the facility followed an IMF recommendation calling for its gradual elimination. The mechanism is designed to refinance medium-term bank loans for productive investment projects.

The recommendation appears in an IMF technical note on the implementation of CEMAC’s regional strategy, prepared ahead of trilateral consultations held on February 26, 2026, between the Bretton Woods institution and regional authorities. The document, reviewed by Business in Cameoon, lists the “gradual elimination of the special refinancing window” among the additional policy priorities that could strengthen the region’s macroeconomic position.

For the IMF, the concern is primarily macroeconomic. In a monetary union with a fixed exchange rate, protecting foreign exchange reserves is critical to financial stability. After reserves declined in 2025, the institution concluded that certain financing tools could increase demand for foreign currency, particularly when they support projects that require imported industrial equipment.

Yvon Sana Bangui summarized the IMF’s position this way: “When foreign exchange reserves are under pressure, financing investment projects leads to imports. Every project financed through this mechanism has required imported industrial equipment, with an immediate impact on our foreign exchange reserves.”

In other words, while refinancing productive loans supports investment, it can also put pressure on reserves when projects depend on imported machinery, equipment, or foreign services.

BEAC Rejects Calls for Elimination

BEAC, however, opposes eliminating the facility simply because foreign exchange reserves are under temporary pressure. The central bank argues that the refinancing window remains an important tool for supporting productive investment in a region where businesses often struggle to secure long-term financing.

“We told the IMF that a temporary situation does not justify eliminating the special refinancing window. Are we the only central bank in the world that has such an instrument?” Sana Bangui said.

The governor noted that the facility has existed for years but remained dormant before being reactivated. According to BEAC, restoring it served a clear purpose: supporting productive investment and accelerating industrialization across CEMAC’s six member states.

“We have had this instrument for a very long time. We reactivated a dormant facility to support economic growth across the CEMAC region. We cannot move toward eliminating it,” he said.

Instead, BEAC has adopted a middle ground. The facility remains suspended, but it has not been abandoned. The Monetary Policy Committee’s April 2 meeting froze operations while establishing a working group to assess the mechanism, including through an international benchmark of comparable central bank tools.

“If no central bank anywhere in the world has this type of instrument, we will eliminate it. But if even one central bank has a tool that supports the real economy, we will not eliminate ours. That is our position,” the governor said.

A Disputed but Strategic Tool

BEAC officials consider the refinancing window a strategic instrument in a region where long-term financing remains scarce. It allows commercial banks to obtain funding from the central bank to refinance loans extended to investment projects in sectors such as industry, agriculture, mining, and infrastructure.

The central bank sees it as both a way to diversify financing sources and an alternative to increasingly expensive international borrowing. Sana Bangui argued that CEMAC must also consider tightening conditions in global capital markets, where borrowers from the region often face high financing costs because of risk assessments that fail to reflect local economic realities.

“Today, we must take into account that international borrowing conditions are becoming increasingly difficult, with interest rates that are sometimes excessive because of ratings assigned by outside firms that do not fully understand our region’s economic context,” he said.

The disagreement reflects a broader policy divide. For the IMF, protecting foreign exchange reserves and limiting financing tools that increase demand for foreign currency should take priority. BEAC, by contrast, argues that preserving external stability should not come at the expense of financing productive investment, especially as CEMAC countries seek to diversify their economies and reduce their dependence on raw material exports.

Cameroon Is the Facility’s Largest User

Cameroon, home to nearly half of CEMAC’s banking network, has been one of the most active users of the refinancing window. In 2025, BEAC approved several refinancing operations involving local banks.

Among them were CFA41.2 billion in loans for the Bipindi-Grand Zambi iron ore project and CFA31.3 billion in financing for state-owned telecom operator Camtel’s investment program.

Other projects have also benefited from the mechanism. CCA Bank received approval to raise CFA30 billion from BEAC to help finance a mining project in Congo. Afriland First Bank requested refinancing for a CFA20 billion palm oil mill project developed by the Cameroon Development Corporation (Sodecoton).

The growing use of the facility underscores its appeal to banks and industrial companies seeking more affordable financing for productive investment. It also explains the IMF’s concerns: the more the facility is used, the greater the likelihood that financed projects will require imported equipment, increasing demand for foreign currency.

The Debate Extends to BDEAC

BEAC has also defended its broader efforts to support economic development across Central Africa. Sana Bangui pointed to renewed cooperation with the Development Bank of Central African States (BDEAC). In 2025, the central bank signed a current account agreement with BDEAC that allocated CFA120 billion to finance development projects across CEMAC. It also increased its equity stake in the regional development bank by CFA86 billion.

“Will we also be criticized for reviving our support for the Development Bank of Central African States?” the governor asked. “This reflects our determination to support our economies. We fully embrace our mission and our commitment to supporting our community.”

His remarks highlight a broader question: how far should a central bank go in supporting economic development without compromising its mandate to preserve monetary and external stability? In CEMAC, the issue is particularly sensitive because the common currency is pegged to the euro, making foreign exchange reserves a key pillar of the system’s credibility.

Balancing External Stability and Industrialization

The suspension of the refinancing window represents a temporary compromise. BEAC has agreed to halt new operations while it evaluates the facility and its impact, but it is not prepared to eliminate it. The IMF, meanwhile, continues to advocate a gradual reduction of mechanisms that could weaken the region’s foreign exchange reserves.

For commercial banks and industrial project developers, the outcome of the debate carries significant implications. Eliminating the facility would reduce access to an attractive source of long-term refinancing for productive investments. Keeping it in place without tighter safeguards, however, could fuel concerns about CEMAC’s external financial position.

The final decision will ultimately require balancing two competing priorities: protecting foreign exchange reserves, a cornerstone of monetary stability, and preserving a financing tool that supports industrialization in a region where access to long-term credit remains limited. By freezing the facility rather than abolishing it, BEAC has bought time. But its disagreement with the IMF shows that financing the real economy has become a central issue in the region’s macroeconomic oversight.

Brice R. Mbodiam