Revival Trigger!

The government’s decision to reduce internal debt by FCFA 50 billion beginning this Monday November 9, 2020 may have several effects on beneficiaries and the local economy as a whole. In effect, going by the press release of Finance Minister, business people, government suppliers and State entities can from today visit the different payment points to get their bills settled. Without necessarily carrying any survey, the news is, to say the least, heart-soothing.  
Records show that the FCFA 50 billion comes after FCFA 900 billion paid some months back and demonstrates government’s willingness; shocks notwithstanding, to continue paying its debts for the national economy to stay afloat. No one doubts the effects of the ravaging Coronavirus pandemic on the national and global economies. Businesses are shrinking with huge jobs being lost and the economies almost being brought on their knees. 
Inasmuch as the FCFA 50 billion cannot settle all the debts owed the State creditors, it is at least a non-negligible revival facilitator for the dangling sectors of the national economy to pick up. Like Finance Minister notes in the release announcing the payment, the move, among others, falls in line with government’s determination to respect the 90 days payment deadlines for suppliers as stipulated in CEMAC regulations and most importantly revive the Small and Medium-size enterprises sector.  Obviously so as it is one of the hardest hit by the Covid-19 pandemic and the effects of their downturn leave visible devastating scars on the economy. 
It is obvious that most of the beneficiaries would be taking the money to pay back loans they contracted in either micro-finance institutions or commercial banks to execute government contracts. But even with that, repaying borrowed money speaks of one’s credit worthiness and instils confidence in the creditor to dishing out more loans. Like the State that is paying her debts, the creditor will as well do so and fulfil most banks’ motto of ‘Borrowing ...