WAMU States to study adoption of a uniform act on factoring across the regional community

Economic governance

Monday, 11 March 2019 16:12

WAMU States to study adoption of a uniform act on factoring across the regional community

(Togo First) - Next Wednesday, the Central Bank of West African States (BCEAO) will hold a regional meeting on the uniform act on factoring across State members of the West African Monetary Union (WAMU).

Factoring is a form of financing that helps companies with cash flow problems due to slow-paying clients. It allows a company sell its debt or invoices to a specialized entity or factor at a discount. The factor hence handles client payments, follow-up, debt collection, and eventually supports non-payment risks.

The upcoming meeting falls in line with actions taken by the WAMU to develop various tools to finance economic activities, and SMEs in particular, the BCEAO said.

Participants are expected to assess the uniform act’s pertinence and coherence as well as think of a way to extend factoring to lending institutions. Representatives of ministries of finance, WAMU’s lending institutions, BCEAO’s partners and representatives of BOAD and OHADA are expected at the event.

Séna Akoda

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