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Cameroon — Enhanced Structural Adjustment Facility
Medium-Term Economic and Financial Policy FrameworkPaper

Table 1. Cameroon :   Policy Measures Implemented
During the First year of the ESAF-Supported Program
Policy Area Implemented Policy Measures Implementation Date
1. Incentives policies
   a. Exchange and
          trade system
Reduction of nonforestry export taxes from 13.5 percent to 10 percent (from CFAF 6,500 to CFAF 4,000 per ton of bananas). July 1, 1997
Creation of a competitiveness committee with private sector participation. December 31, 1997
   b. Regulatory and          domestic pricing
Adoption of new competition law aimed at preventing and penalizing the abuse of market power and restrictive trade practices. June 1998
Introduction of a mechanism for monthly revision of petroleum product prices to reflect movements in world market prices. December 31, 1997
Elimination of the national refinery's (SONARA) monopoly over the supply of petroleum products via liberalization of competing imports, and establishment of a temporary surcharge on imported refined petroleum products. July 1, 1998
2. Fiscal policy and public sector
   a. Revenue and
Completion of a census of enterprise tax arrears as of June 30, 1997, and definition of a collection strategy. December 31, 1997
Adoption of a value-added tax (VAT). June 30, 1998
Timely transfer to the Treasury of the oil sector revenue collected by the national petroleum company (SNH). 1997/98
Issuance of tax identification numbers to all enterprises subject to profit taxes (régime réel). December 31, 1997
Increase of forestry acreage fee and improved collection of forestry taxes by basing the stumpage fee and export taxes on f.o.b. export prices. July 1, 1997
Renegotiation of enterprise-specific conventions to reduce tax exemptions. 1997/98
Increase in the share of nonwage primary spending on priority sectors from 51 percent to 55 percent. 1997/98
Adoption of first phase of the new accounting system at the Treasury (PATRIOT). July 1, 1997
   b. Public enterprise
Provision of adequate financing of the Privatization and Rehabilitation Commissions. 1997/98
Selection of a private concessionaire for the railway system (REGEFERCAM). May 1998
Launching of competitive bidding for the privatization of SOCAPALM, CAMSUCO, and SNEC. 1997/98
Completion of preparatory studies on the privatization of CDC. May 1998
Adoption of new regulatory frameworks for the telecommunications sector. June 30, 1998
Launching of competitive bids to allow the private sector to establish a second cellular telephone service. June 1998
Progressive transfer to ordinary law status of a number of state companies with public capital and mixed enterprises. 1997/98
   c. Administrative
Completion of organizational structures for the Culture Ministry. December 1997
Departure of 1,229 civil servants under the 1995/96 and 1996/97 departure program (POEs). 1997/98
3. Financial sector policy
Initiation of a feasibility study on establishing a regional financial market. May 1998
Revocation of the legal clauses stipulating that at least one third of bank capital must be held by Cameroonian interests. July 1, 1997
Constitution of a trust fund to guarantee payment of principal on 30-year bonds issued to restructure commercial banks. 1997/98
Liberalization of commissions on bank transactions. July 1998
Submission of savings and loan cooperatives to COBAC supervision. June 30, 1998
Collection of CFAF 13 billion of nonperforming assets (relative to a target of CFAF 7 billion) by SRC. 1997/98
Launching of bids for the privatization of two public insurance companies (SOCAR and CNR). June 30, 1998
4. External debt
Restructuring of the debt to Paris Club creditors. October 1997
Implementation of the Commonwealth debt reporting system by the national debt management agency (CAA). 1997/98
Initiation of the process of data reconciliation with London Club creditors. 1997/98

5. Sectoral and social policies
   a. Energy Completion of an independent audit of SNH's accounts by an independent public accounting company. December 31, 1997
Adoption of an action plan to revamp SNH's accounting system. June 1998
   b. Transport Adoption of a comprehensive restructuring plan for the port of Douala. May 1998
Elimination of all national preferences and cargo-sharing arrangements for maritime transportation. December 31, 1997
   c. Education Adoption of a law orienting education policy. March 1998
   d. Health Authorization of health centers to retain 100 percent of their revenues. June 30, 1998
Completion of preparation of national health map. June 1998
Making the Centre National d'Approvisionnement des Médicaments Essentiels (CENAME) fully operational. September 1997