Page 315 - Atouts Economiques Cameroun-2019-GB
P. 315

rue du Mfoudi
PO Box11991- Yaoundé
Tel. : (237) 222 22 09 11 222 23 37 39
Fax. : (237) 222 23 38 33
The Société de Recouvrement de Créances is a State-owned financial institution created in 1989. Under the supervision of the Ministry of Finance, the Société de Recouvrement de Créances - SRC is now the secular arm of the State as regards bank management...
The essential tasks of the Société de Recouvrement de Créances (SRC) consist in the voluntary liquidation the assets and liabili- ties of any public credit institution entrusted to it by the supervisory authority; the liquidation of the business capital of any credit institution entrusted to it by COBAC; the judicial liquida- tion of the assets of any credit institution entrusted to it by the courts; the collection of doubtful and contentious and/ or bad debts held by public financial institutions upon request and after approval by the Ministry of Finance. To this, we have to add: the com- pensation of the savers of the banks that have gone into liquidation and the management of the real estate assets of the said banks.
In terms of achievements, one should point out that the overall recoveries for the period 2011-2017 amount to more than 34.7 billion CFA francs, including more than 20 billion CFA francs for the State of Cameroon, repre- sented by the Ministry of Finance (MINFI).
It should be remembered that in the context of the restructuring of Cameroon's banking system in the 1990’s, the State had appoin- ted the SRC as authorized agent to recover the compromised debts of the banks under- going restructuring. The portfolio transfers were then carried out without prior assess- ment, and the amounts recovered were approximately 15% of the nominal value of the assets sold to the State, which is very low. After this experience, it was suggested to the State, after it had requested the SRC for the restructuring of two other banks, to primarily assess the portfolios before any buying up of compromised debts.
As consequence, there has been a deve- lopment of an assessment methodology around three areas: the credit report, the guarantees attached to the receivables, the judicial files. After the difficulties had emerged in the valuation of mortgage gua- rantees and business capital, a few exchanges with an International Monetary Fund (IMF) team visiting the credit recovery company have revealed other shortco- mings. In particular, the segmentation of doubtful debts, the evaluation of cash flows, the evaluation of collaterals and the inclusion of the operating costs of the SRC.
That being the case, a technical assistance from the IMF was required to strengthen the capacity of SRC’s employees to assess the receivables. Specifically, the primary purpose of this assistance was to streng- then the SRC's ability to assess bad bank debts and to allow the government to buy up doubtful debts through a free of charge neutral transaction.
The technical assistance, which has increa- sed the SRC’s skills has specific objectives that should lead to: the upgrading of doubtful debt valuation method; credit seg- mentation (individual valuation / valuation of portfolios); assessment of cash flows related to the repayment of the monthly payments; assessment of collaterals, inclu- sion of collection deadlines and associa- ted costs; use of databases (real estate prices, etc.); operating costs of the Corporation; practical application in the buy-out of troubled banks, etc.
Expected results after the capacity-building include the development of a manual on the methodology for the assessment bad bank debts n

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