News & Analysis: Debt and debt relief

State Minister Yasmin Wohabrebbi: Ethiopia’s Prospects and Priorities for Economic Recovery

COVID-19 Africa Watch talks to State Minister Yasmin Wohabrebbi about the policy response to the pandemic, the efforts to develop the digital economy, and the G20 Debt Service Suspension Initiative (DSSI).

via COVID-19 Africa Watch

Frontier Debt Shines as Unlikely Haven in World of Rising Rates

“In terms of geography, money managers who specialize in frontier assets are almost united in favoring Africa, saying the region will benefit the most from rising raw material prices.”

via Bloomberg

Scott Morris: ‘How China Lends’ and the Implications for Africa’s Economic Recovery

“Better disclosure of the terms of the contracts themselves would certainly be better practice going forward, and in times of stress, it can facilitate quicker and easier engagement with the key multilateral actors.”

via COVID-19 Africa Watch

France to provide Sudan with $1.5 billion bridge loan to clear arrears

“France will grant a $1.5 billion bridge loan to clear Sudan’s arrears to the International Monetary Fund, French Finance Minister Bruno Le Maire said on Monday.”

via Reuters

The High Cost of Underrating Africa

“International credit-rating agencies perennially assign overinflated risks to Africa, irrespective of its improving macroeconomic fundamentals or the global economic environment. These ‘perception premiums’ are one of the region’s biggest development challenges.”

via Project Syndicate

IMF announces financing plan aimed at Sudan debt relief

“The amount of the financing was not disclosed, but the IMF and World Bank put Sudan’s total external debt at an estimated $49.8 billion as of the end of 2019. “

via The East African

Low-Income Countries Need a Boost for the Recovery. Here’s How the IMF Can Step Up.

“Importantly, stepped up financing by the IMF needs to be part of a broader package of enhanced international support to LICs, including through commensurate action by the multilateral development banks and bilateral agencies.”

via Center for Global Development

AfDB says COVID-19 is giving East Africa chance to renegotiate debt

“East Africa was the continent’s most resilient region in 2020 due to less reliance on primary commodities and greater diversification compared with other parts of Africa… The region’s real GDP growth will rebound to 3% in 2021 from 0.7% in 2020, with Djibouti, Tanzania, and Rwanda as the potential top performers.”

via The Africa Report

Bank of Uganda keeps policy rate unchanged at 7 percent for April

“Uganda’s Central Bank kept its benchmark policy rate unchanged at seven percent Wednesday in a strategic move that promises stable lending rates amidst increased credit default levels and renewed strength in the value of the Uganda shilling against the US dollar.”

via The East African

Sovereign Debt: A Critical Challenge

“Today, the earlier fear of a dangerous lack of liquidity has been replaced in large part by concerns about the ability of the international financial architecture to support countries with increasing levels of debt and uncertain access to capital. One worrisome aspect seems clear: Many countries will require debt relief in the next few years if they are to maintain or restore access to financial flows. Higher interest rates in advanced economies, and the United States in particular, could compound the difficulties of emerging market countries in servicing existing debt and refinancing maturing debt.”

via Bretton Woods Committee